Ann: Equity Raising Presentation, page-8

They start with a share buyback and that stops as quickly as it starts. Then they do a massively diluted capital raising to raise $30.4m. Run through the maths, with the offer summarised as follows:

Institutional
- SC Global - $16.4m
- Balance - $1.7m

Retail
Underwritten retail component - $12.3m

The cost of the raising $1m



Institutional money of $1.7m less costs of $1.0m, net $0.7m. That is not a difficult market, that is a disaster. Then forcing existing shareholders to follow up to retain value.

They dilute their NTA by 22% when their gearing level was originally at 18% and cost of debt is 5.7%, and unsurprisingly the share price drops by 20%.

They went to all that effort to bring in new money of $13m in addition to SC Global's funds. That is a lot of effort for no real result when it would have been cheaper to use debt.

All with the explanation that they are raising capital to accelerate built-form housing, which they could have funded by debt.

Hmmmm. Something does not smell right to me.