Ann: Placement and Pro-Rata Non-Renouceable Rights Issue, page-15

There needs to be news so that SP is much higher, so that shareholders are interested in buying shares thru the rights issue at .055c, instead of the from the market at say... .075c !

But, if they have news to release, why didn't they release that first so that the RI could be done at a higher SP and maybe raise more for less shares, and result in far less dilution ?

That always amazes me so I think I am missing some fundamental strategic move somewhere that makes this approach more attractive...more dilution, more shares, more shareholders ?

The number one priority is actually raising the cash required, from shareholders, so I guess a lower price is safer.

If they don't have any news to lift the SP which is probably the case then the chance that the RI is under-subscribed is real. IF I can buy shares at .052c then why would I buy via the RI at .055c ? I know it would be good for the company but I'm past that. I have been taken for a ride a hundred times. No more.

I wish the companies were allowed to issue shares at .001c on the condition they are sold into the market at best available price, within a year. A 4C would update the market on the new issue of shares and the money raised. Then the CRs can be done easily and dissappear into the flux of everyday trading.

Yes Im sure there are alot of problems with that as well...certainly around the dilution of existing shareholders. Well, they are free to buy as many as they like at what ever price they like, as long as its the market price...