Ann: Entitlement Offer to raise up to $9.9 million, page-87

So lets get this straight, to make things easy we will just use straight numbers.

Company is worth $30 million @ 3 cents with 1 billion shares on issue.

Company does not want to be taken over, whoever thought anyone wanted to take them over is stretching as well because where is the evidence of this, they couldnt even get funding from several strategic partners that they were willing to give up 20% of the company too, so to think someone wants to take it over is just hotcopper rubbish but Ill go with it to see how it makes any sense whatsoever. The theory here being to stop a take over they offer an entitlement to existing shareholders at 1 cent, devaluing the company by $20 million. Wow great work, Lost $20 million of shareholder value, for what exactly?

This helps shareholders how? This helps stopping a takeover how? What are the mechanics? Whats the difference to stopping whoever wanted to take the company over when it was valued at $30 million, same shareholders before the raise but now the company is worth $20 mill less.

All thats happened is its made the company lose around $20 million. If i was a shareholder I would be livid. Also check out the half yearly "In discussions with several strategic industry partners seeking a cornerstone investment up to 19.99%" Guess none of those "several" strategic partner wanted a part of it.

Hope there is a silver lining for some holders here because I hate seeing this happen time and again on ASX with management paying themselves great salaries for years off the backs of the Australian public who support the cap raises, but who end up with cents on the dollar for their investments, whilst management walk away scott free and can do it again, its possible things might turn but with a potential 3 billion shares on issue, and a raise at 66% discount to the share price, there are a lot of red flags here.