1.2 cents, page-19

practisingaccountant.

"1. Novus et al are providing liquidity to shareholders so they can participate in the rights issue and reduce their underwriting commitments."

How are Novus reducing their underwriting commitments by buying shares now at 1.2 cents?

My understanding is, that if they buy them now at 1.2 cents so that shareholders can participate in rights issue, then they are paying 0.2 cents extra for shares which they would have otherwise underwritten at 1.0 cents if shareholders did not take up rights issue. Does this make sense?

I've read quite a few of your posts and greatly appreciate your thoughts and input.

"It can only mean that Palermo/Dolphin is confident of being able to resell those shares for more than 1c down the track."

Palermo is putting his money where his mouth is. A vote of confidence by the person who is in the best position to know the potential of the company. This sits well with me.

Bouzouki