incredibly good rights issue., page-7

I dont profess to be an expert, but I dont think you guys have quite thought this through.

My quick Maths -

Current Value:

Number of shares - 72 mill
MC - $27.5 mill
Share price - $0.38



Post CR Value (assuming full take up of New Options and all New options are exercised at $0.20):

Number of shares - 144 mill
MC - $27.5 mill + $0.15 mill (from option purchase) + $14.5 mill = $42.15 mill
Share Price = 42.15 mill divided by 144 mill
= $0.29

In other words, if you had invested $3800 before CR to purchase 10000 shares, then spent $2000 exercising your 10000 new options, you would now have spent $5800 on 20000 shares, which at $0.29 cents a share, will be worth.... $5800, a whoping increase of 0%.


Correct me if Im wrong but thats how I see it.

Remember, it will be April before you can trade your new shares.... a lot can happen to the shareprice in 60 days. You might be right and the shareprice will remain close to its current levels, but my guess is it will creep closer and closer to that $0.29 mark.

Then factor into it that everyone gets these extra shares. I see a big sell off once these are issued as people try to take a profit (if there is one to be taken).