share placement, page-13

Wasa, while personally I would have liked to top up at 5.9c as I'm gradually adding to my holding, sometimes it's best for a company to cleanly raise money this way when larger investors are showing so much interest.

It will help sure up/strengthen the register and give the company a quick and painless cash injection to help them continue on with the landing of "at least three new alliances" this year and expand operations. If a rights issue or CR was offered to us holders the shareprice would probably be down nearer to the 5.9c and take a while for the raising to be done, a month or more of flushing out the register. Not to mention that they had to do this in two tranches anyway due to the 15% placement capacity, another messy way for things to be done, especially if we saw overall market weakness.

Check out what recently happened to SBL and their rights issue, it was first put forth at 3.3c when the stock was 4c, holders sold it down to virtually that price the next day from 4c, then the markets took a turn and the price got hit even harder, now the revised issue is for 2.5c to get it across the line, very messy.