update on entitlements offer, page-3

I hope the 5c strike is a joke.
Yes a low strike brings in more cash, however blows out dilution further and worst of all sends a message about anticipated sp.

Regardless, the cap raise is a complete farce.

If they have to go back to the drawing board then at the very least go with notes or a better alternative.

The company has a strong NTA, doesn't want high dilution and is displacing senior debt.
Investors would have oversubscribed for a 12c notes offer at say 9.5% coupon, 16c conversion.

- This would have offered noteholders reasonable security and income.
- The company would have picked up cash with less dilution.
A win win in my view.

Most companies don't have the asset backing to make notes worthwhile, yet these guys pass up the chance to take advantage of their situation.
Now they want to add in options at a low strike, incredible.
A sea of dilution and lack of vision.

Surely there were better alternatives and zero thinking outside the box!
Mav