good money after bad ? , page-3

Agree Farmboy..... 5% fee, a maximum of 1mill if no one takes up the offer and he has to cough up the full 20mill, bargain I say.

Its been pretty quiet on hear since the announcement.... thought more people would have an informed opinion on this one, not just Farmboy. And what I have read seems to be on the negative side...... maybe no one really understands, like farmboy has posted in previous posts.

This is not just an unfair dilution of stock to raise working capital for a greedy company. Its a rights issue, and the company has given all share holders the right to participated on a basis of .965 shares for every 1 share held.... everyone knows this by now but not everyone can see that they haven’t been hard done by, hence the negativity surrounding this one.

Farmboy has posted some great examples how this one has been set up and how no one has really lost anything yet. I’m sure the penny will drop for all on the 20th or shortly after when their entitlements show up on their position statement, showing like in farmboys example...

POS shares total 1000 @ .135 = $135
POSR (entitlements) 965 @ .03 = $28.95
Total Position = $163.95

Now someone please tell me this is not in the best interest of share holders to raise funds like this, If you don’t want your entitlements just sell them on market exactly the same as you would sell shares or options, or execute them for .10 before the 11th May and suffer no dilution.

Other companies would just do a simple brain dead, quick placement at the expense of their share holders, diluting everyone for a quick buck, I don’t see that hear.

Between now and the 4th May we/anyone can buy and sell these POSR on market, they will follow the share price up and down exactly the same as an attached option.

IMO the company will want to run this, between now and the 4th, to make it more enticing for people to participate in this offer, or for their investors like you and I to sell our POSR at a reasonable price if we choose not to fork out any more $$$, don’t be surprised if the company takes this opportunity to release some POSitive news to the market, in the same way companies run their share price before options are due to expire to bring in the extra capital.

I don’t think POS will double in the next few weeks from .135 to .27.....................But POSR might go from .025/.03 to .06

AF IMO is now showing his share holders and International parties who maybe considering off take agreements with POS that he has a little belief in this project and that he is willing to put his money where his mouth is....... who knows where this may end up in the next 5 months leading up to the expire date of his charity’s 115 000 000 .40c options.

This is just My Opinion, please do your own research.

Cheers JG