cap raising, page-26

Some snippets from the BBY email:

Private Placement

For the Information of Sophisticated and Professional Investors Only

Linc Energy Limited

A coal to diesel/avgas "new energy" producer

$50mn capital raising via Placement and SPP

Pricing via bookbuild closing noon Friday 31st July


BBY's valuation is $3.20 (sum of the parts) which is also our June 2010 price target, approximately double the current price of $1.55. The resolution of the sale of surplus coal assets in SE Queensland, expected to fetch $1bn to $1.5bn ($2.20 to $3.30 per share) would be a significant, confidence-restoring win for LNC as one sale has already collapsed.

The main risks for LNC are:
Financing the commercialisation and construction of the full scale plant, costs in the order of $1.5bn
Oil price - LNC needs $40$45/bbl to break even, and a higher price to operate with margins comparable to conventional oil producers
Not getting a satisfactory sale of the surplus coal assets (Emerald) away

Use of Funds;
Acceleration of the commercial GTL plant engineering and long lead items $10M
Drilling program Galilee and SA $10M
Purchase of US assets $6.5M
Working capital $5.5M
(That comes to $32M . . . perhaps that's a line in the sand)

If you craving to become a sophisticated investor like myself, I will reveal to you some ways in which my sophistication manifests itself:

1. When drinking from my coffee cup, my pinkie sticks up in the air
2. I buy and hold (ie watch my shares going from $5.39 to $1 while saying "it's only a paper loss" anf "what's a stop-loss?")
3. Even though I don't own a tuxedo, I do own a t-shirt which says "If you can see this t-shirt, then some bastard has stolen my tuxedo"