something not right with sts acquisiton , page-27

IMO, I think all the board thought that raising further capital was going to be easy based on what they had put in place for growth in the future (regional managers etc) and current stable base work but they forgot that a lot of sophisticated investors (including Euroz) and current shareholders got burnt after the last capital raising in July 2009. The capital raising in July 2009 was meant to be used for acquisitions and to grow the company, they then went and bought STS and when that announcement was made in Nov 09 they said that 95% of the purchase price for STS was paid in cash but now we have a debt of 25 Million Dollars for STS purchase. Neptune IMO robbed Peter to pay Paul, basically IMO they went into debt for STS and used the Capital raising for working capital, which is all but now depleted. How can sophisticated investors now trust the board of Neptune. I really do think this is what is currently happening, basically no one trusts the board of Neptune until they can see a turnaround in the structure of the business to create good profits and a change in the board. I emailed Christian Lange in September about the debt to past business owners and also the debt owing to NAB and he said he wasnt worried and basically it was a technical matter. I think he thought it was going to be so easy to raise further funds. I have seen quite a few companies go under now due to lack of support from shareholders and sophisticated investors. You think I would have learnt from my past mistakes but with Neptune I really did not see this one coming even though I asked all the right questions of the CEO back in September. I also think where they went wrong is they should not have tried to raise so much in one hit. Maybe a SPP back in April to pay out past business owners and pay off the debt for the ship, then now approach shareholders for a further sum to pay out balance of NAB for STS. The moment it got out that NMS were raising 80 Million Dollars at 8 cents per share certainly sent the wrong message to potential investors.