cap raising, page-11

I'm extremely disappointed with how this has transpired. I believe there has been some gross opporunism on part of the major shareholders to increase their stakes in the company (or avoid dillution?). I'm unimpressed that the company has accepted the terms for the loan funding especially.

Please explain to me how a loan of $3.36M is neccessary- then to be converted to equity. The loan facility (regardless of how structured) should be of such magnitude that it allows the company to continue to pay overheads and operational expenses relating to the ongoing vermiculite production (NOT expansion) until the company could secure additional capital from the market. Surely $3.36M (plus freeby options of course excersizable AT $.025 31/12/12) is very excessive. Notwithstanding the poor raising price for the remainder of the placement (what price?)

The company has now put in place the makings to dillute existing holdings almost 100%, not something I suspect ordinary holders would be too happy about (how remiss of me, there is access to a $15K SPP...)

I do expect this company to be in a completely different place in 2-3 years time, but until operations become profitable and sufficient to provide excess cashflow for the companies other ambitions, I suspect this may not be the end of fund raising. Not a pleasant place to be as a minority holder that is for sure. This is their track record however so nobody could claim that this is a total surprise.