Ann: Rights Issue to Fund PFS for La Demajagua Project Cuba, page-5

Quite a complicated offer this one.

2:3 means massive dilution if shareholders don't participate.

50% underwritten - 40% by chmn Brian Johnson.  

Looks to be a very cunning scheme to dilute CAMIF & Mercury International - which together hold 24% and are ineligible to participate.

At the end of the process Brian Johnson will increase his stake from 11.32% to between 24 & 33% 

Shortfall offer could run for three months - going to put a lid on the share price unless the preliminary numbers put a rocket under the share price

Still, if this comes off, the upside is huge.

Company has a market cap of $5m and the plant is worth maybe $20m?

No idea how the Cuban project is going to be funded - they are selling 40% of the company to fund the preliminary analysis.

And the other potential JV partner is capital starved!  Weird stuff.