Ann: US Growth Fund investment in Mikoh , page-4

Added salt is no good for you, HSHL, so no thanks.

Yes it's good that this cash will be available to the company, however there are two 'buts'. And I am not trying to be negative - after all, I have on several occasions expressed my confidence in both Richard Sealy and the company's technology - just look at things objectively.

The first but is that it is unfortunate that the shares are having to be issued at such a low price The cash received will still be the same, but the lower the share price the higher the number of shares issued. At 2 cents a share there'll be nearly 40M shares issued, meaning a further 10% (approx.) dilution for all of us. Even if these new shares were able to be issued at 3 cents (and let's hope that still happens i.e. the market picks up dramatically in the next week or two) dilution would be a lot less.


The other but is that, assuming these shares are placed at about 2 cents each, that will be just about all the company's 15% new issues cap used up in one placement. I know the last EGM authorised the issue of more shares, but the fact remains that the funds to be received from this placement will presumably have to last MIK until the AGM in November, or close thereto, to avoid yet another EGM needing to be called to refresh the cap again. This $750k may be sufficient - it would be nice if there was an assurance about this at tomorrow's meeting.