convertible note issue, page-5

By the way, I forgot to point out another aspect of what you'd said re the options ... yes, there will be more shares issued within 2 years of the options being issued, but that will add an extra $4M (approx.) to the PLT bank balance.

For a more detailed look at the upcoming share structure, I'll reiterate a post of mine from a few weeks ago (inviting a re-working of Dabru's back-of-the-envelope calculations, unfortunately not done) as follows:-

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Subject: future earnings
Posted: 03/10/07 12:26
Posted By: TTH Views: 106
Post #: 2158450 (Start of thread) Sentiment: Buy
Voluntary Disclosure: Stock Held

Hi all PLT'ers,

A week ago Dabru put out a post which discussed potential future earnings. I meant to reply to it at the time, but there was a lot going on at the time. Since then, I've worked out that the number of shares on issue will change dramatically from what was assumed, and wondered if Dabru or anyone else would like to rework the numbers (he did invite others to comment or alter, after all).

Here's Dabru's post:-

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Subject: re: need for capital
Posted: 27/09/07 18:00
Posted By: DABRU
Post #: 2144961

Hi fellow holders.
Although they are not definite forecasts PLT has given us some possible future earnings. Even though they cover themselves they must have good reasons to put these possible earning forecasts out, most probably on the feed back they are getting from their clients/agents.Going on 121m shares on issue.
2008 FC$8.84m
EPS= .073c
PE of 15= $1.09
PE 20 = $1.46

2009 FC > $27m
EPS= .223
PE 15 =$3.45
PE 20 =$$4.46

2010 FC > $60m
EPS=.49c
PE of 15= $7.35
PE 20= $9.80

I've allowed 40% Net b4 Tax so I maybe a little out. Someone else can sort me out if I'm to far out.
If the company can get the share price to over a dollar they can raise a few million without issuing too many more shares. I imagine they only require a few $m as the company will start making a profit in the next 6 months or so.
People are going to buy this now on future earnings or that's what I think anyway, but I'm no advisor so DYOR
Regards Dabru

<<<<<<<<

The numbers I worked out re. shares on issue are as follows (please correct me if there are mistakes, although I'm pretty sure this is about right):-

SUMMARY:
=======
- by March 2008: 237.5 M shares, $13M-14M capital
- by March 2010: 280 M shares, additional $4M capital


CALCULATIONS USED:
================

Shares on Issue (M) as at Sep 2007:
- 120,600,000

Pre-IPO Converting notes convert on 29/12/2007 to:
- 17,052,631 (based on $1,620,000 @ $0.095)

Pre-IPO Converting notes convert on 28/02/2008 to:
- 67,970,526 (based on $6,457,200 @ $0.095)

Subtotal: 205,623,157 shares

Oct 2007 Capital raising (converts on 26/10/2007):
- Rights issue (1 per 5):
..... up to 24,120,000, let's say 20,000,000 taken up (for $8M)
- Placement: 10,000,000 (for $4M)

So, as at the end of February 2008:

TOTAL (pre-options) (>= March 2008)
===============
Total issued = 235,000,000 (approx)

Working capital = $13-14M

OPTIONS:
=======

Nov05 Rights issue:
- 23,400 (converts 28/11/2007 @ 25c; PLT gets $5,850)

Ben Dillon
- 2,500,000 (converts 17/01/2008 @ 8c; PLT gets $200,000)

Pre-IPO Converting notes (1 for 2):
- 8,526,315 (converts 29/12/2009 @ 9.5c; PLT gets $810,000)
- 33,985,263 (converts 28/02/2010 @ 9.5c; PLT gets $3,228,600)

REVISED TOTALS (taking options into account)
=============

MARCH 2008:
-------------

Total issued = 237,523,000 (approx)

(235,000,000 + 23,400 + 2,500,000)

Working capital = $13.2M-$14.2M

(excluding other cash burn & receipts: $13-14M + $5,850 + $200,000)

MARCH 2010:
-------------

Total issued = 280,035,000 (approx)

(237,523,000 + 8,526,315 + 33,985,263)

Additional working capital from pre-IPO options= $4,038,600

($810,000 + $3,228,600)


Cheers all.