i'll go with the smart money, page-5

geepop

"HSBC CUSTODY NOM AUST LTD increase shareholding between 22 Nov and 22 Dec 2011 in ISN from 26 366 789 to 114 641 680. All top 20 shareholders increase holdings in ISN. Share trading basics tells me, this is when you buy"

HSBC noms = Bergen imo, no other holder has that many do they?

The face value of the note is $1,120,000 with $318,000 remaining. I did mention on my last post that there were a couple more tranches to come although i'm surprised that the conversion price was 0.3c again. If the final tranche is at 0.3c, that's an additional 106m shares on top of the 96m + 90m


the conversion price on the vwap should be

1. 130% of the average of the daily VWAPs per Share for the ten (10) consecutive Trading Days immediately prior to 28 September 2011;

130% of the 10 days vwap leading up to the 28th September announcement, just below 2c at a guess

2. 90% of the average of three daily VWAPs per Share during a specified period prior to the conversion date of the Convertible Security.

the lowest 3 consecutive days vwap at the end of November was just over 0.4c, the 90% average of that total is 0.36c

the lowest price that shares could have been issued using the formula is 0.36c imo

"If this is what 30 Dec refers to then $1,120,000/90 000 000 = 0.012444c/share which may have been 90% of the vwap in the 3 days to 30 sep when shares hovered between 0.013 and 0.017c/share"

looks like you created a formula of your own there geepop, no relevance imo

what i find interesting on the 29th September release under the heading - minimising dilution lol..

2. Minimizing dilution. The convertible security is convertible into the Company’s ordinary shares at one of two conversion prices determined at the election of Bergen and comprising either 130% of the average of the daily volume-weighted average price (VWAP) of the Company’s ordinary shares during 10 trading days before the execution of the Agreement or 90% of the average of three consecutive daily volume-weighted average prices (VWAPs) of the Company’s ordinary shares during a specified period immediately prior to the date of conversion. Bergen acquires the additional ordinary shares in the Company under the share purchase facility at a purchase price determined at the election of Bergen and comprising either 130% of the daily VWAPs of the Company’s ordinary shares during 10 trading days before the execution of the Agreement (this price cannot be utilized by Bergen for more than three monthly investments during the term of the Agreement) or 90% of the average of three consecutive daily VWAPs of the Company’s ordinary shares during a specified period immediately prior to the date of the issuance of the ordinary shares.
This allows the Company to potentially issue new shares at prices that are linked to the prices prevailing at the time (with the convertible instrument being subject to a maximum price) (i.e. potentially at a premium to the current share price) and minimise the dilution for its shareholders.

did you see the bit about immediately prior to date of conversion? how can they still be issuing anywhere near 0.3c? i'd have thought 90% vwap would be closer to 0.6c-0.7c immediately prior to the latest conversion

looking at those HSBC nominee shares held before and after, Bergen likely sold most of the 26m during the rights issue (they were allowed to sell up to $100,000 worth according to the prospectus) and replenished with the note and some sub-underwriting shares

the company should let holders know why shares have been issued at 0.3c originally (should have been 0.36c imo) and why the subsequent issue of 90m at 0.3c (should have been much higher based on recent trading action)