27.1 million cr, page-19

The merit in management's proposal is highlighted by considering the numbers involved.

Check this out.

To raise the $23m (that the new investor will contribute) from existing holders would require issuing a 1:1 rights issue with about 30c due on each new share!!!!. (I'm ignoring the 1:6 issue)

So current holders would have to raise $3k for every 10K shares they currently hold!

Experience shows that would have decimated the sp due to fact many holders needing to sell in an attempt to raise $.

But as it stands holders can use the $3k saved to buy around 9K shares on market.


Management's method, at the very least, provides a predictable consequence on SP and relatively simple / stress free CR method for existing holders.

The bottom line is that we need a heap of cash right now to speed up the R&D on this critter.

Whatever method is used and, depending on your circumstances, you always have choice and opportunity to maintain your equity.

Yesterday’s closing price of 33c suggests that people are realising the merit in the proposal - & coupled with the promise of our virotherapy.

Those holding shares in pension funds are in difficult position because they are not permitted to inject cash to buy rights etc.

If someone else pays up – of course your share is diluted. There’s no free lunch!

The logic in some arguments being posted is that some people want their equity maintained without having to pay anything.

All the stuff about shareholder loyalty not being respected is tantamount to suggesting that the loyalty concept somehow pays bills.

Investors should understand investing in spec stocks is to sign up for periodic CR and associated dilution.

Rather than complain, I think we all need to appreciate that in VLA we, at least, appear to be on a winner at a low buy in price – unlike the result faced by most? many? spec shares.

I've read nothing to change my view that the plan is brilliant!

Is the above a ramp?

YEP - but only a blatant one! LOL.

If it is please detail criticism.
Cheers all.