new placement price

I got a call from my broker at Hartleys and CPS securities offering a new placement details.

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ASX Code: AWD
Offer: Private share Placement to raise $8,050,000 at
$0.007 cents per share

Share placement of ordinary shares and rank equally with existing share on issue. Pursuant to the placement the company will also issue one free attaching option for every four shares acquired in the placement. The options will be issued as a new class of listed securities under the proposed ASX code “AWDOA” at an exercise price of $0.01 (one cent) with an expiry date of 31 December 2015 (it is proposed these options will be listed)

1,150,000,000 shares will be issued at A$0.007 cents per share to raise up to $8,050,000 with one free attaching listed option for every four shares in the placement, subject to shareholder approval meeting scheduled to be held on 30th November 2012. The Company has also entered into a Term Sheet for an equity line of credit for a further
$5,000,000, which the Company may draw down on, at its discretion, if additional funds are required to reach target drilling depth.

The placement and options described in this placement are subject to and conditional upon the receipt of shareholder approval at the Annual General Meeting to be held on
30th November 2012.

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Even if they get the money here the share price will likely open at 0.007/0/008 range anyway. Management clearly stuffed it up.