great announcement out, page-21

I see Werley dropping my name into the mix. For what it is worth here is my view on what is going on here.

At the upcoming EGM, there is a resolution to issue up to 75M shares at 20% discount to the average price for the 5 days prior. There are two scenarios;
1) the company has a solid backer for these shares and will therefore feed out the good news prior to issue to raise more capital (eg. if sp 20c, the raising will add $12M to the coffers) or
2) the company is issuing the shares to "mates" and is therefore capping where possible to get the price down prior to the run of announcements that will send the sp North.

If I was a cynic, I would say they are playing the latter card. The efforts to keep the sp at 12.5 backfired prior to the recent market crash with the buyers pushing it to 16.5. The timing of the crash is opportune for them to cap the price whilst uncertainty lingers.

In either scenario, the stock is a strong buy IMHO whether it is a very quick gain or a slightly longer one. In any event once the EGM is over and the resolutions are passed the handbrake will be off and the pedal will be to the metal.

The current announcement is a good bit of fluff to keep the market informed without any quantifiable upside. Coupled with announcements still to come, the full value of this one will become realised.

Hold for the mid term and then hold on to your hats!