shareholder's frustrations, page-7

My frustration is pretty simple. I invest in companies like PYC with the full expectation that they will need to raise capital in the future and that my initial investment allows for this. I have no problems stumping up additional funds for a company that I think is worth ongoing support. What has always bothered me, and Phylogica is not alone in this, is the propensity for management to dilute the living daylights out of existing shareholders holdings by offering highly dilutive capital raisings to select individuals and leaving the remaining shareholders with the bill (negative impact on the value of their shareholding).

Why is it that existing shareholders do not get such offerings made available to them first (we are the owners of the business)? If exisiting holders do not want to participate then any surplus shares, convertible notes, etc can be placed accordingly.

As this is a capital raising involving convertible notes then why the hell aren't we being offered these notes in proportion to our existing holdings? If we don't wish to take up the offer then so be it. Surely the board is failing to represent shareholder's interest in this case.