some reading, page-20

To play the Devil's Advocate (once again) may I offer an example of a recent cap raising - INL.

The SP was around mid 7c, and was also seen as excellent value by shareholders. I bought a handful in the low 8c range, so I agreed.

Last week they announced their cap raising. A 1:5 rights issue at 5c.

The SP immediately found the 5c range as a result, recovered into the 6's and I ditched mine for a loss.

With SBN currently trading around a VWAP of, at a guess, 1.7c, don't be surprised to see a rights issue price of between 1.2c - 1.4c. If they do a rights issue at higher than 1.5c at the moment they run the risk of a minimal update. It has to be a substanital discount to generate interest.

Of course the more shares you can get before the record date the bigger your entitlement will be, but there may also be a small window where you can buy at a further discounted price, and still receive your entitlement.

In this range a movement of one tick either way is a consirable percentage, so great fun trying to pick it.

Does anyone know when they're releasing the prospectus?