spp, page-10

The SPP is approaching...but in my estimation it is unlikely they will get the $2,000,000 hoped for from shareholders at a discount of only 20% to market value.

Assuming the average contribution is around $5,000, this would require 400 shareholders to take up the offer for it to be successful.

With the share price currently moving between 3-3.5 cents this would add another 66,000,000 shares to the register. Given recent trading volumes it seems unlikley that shareholders would be able to sell the shares purchased through the plan (20% discount) and make a profit in the short-term.

Furthermore, the company has stated that the SPP may proceed before noteholders agree to extend the maturity of their notes. During this period money from the SPP will be held by the company until a decision has been made - and will be returned to shareholders if an extension is not agreed to. I wonder however if during this period the share price will fall below the level of the SPP.

I am struggling to find an incentive for shareholders in this SPP.

??

Dreamcatcher