amcom/ausdrill

Can someone please enlighten me as to the recent heads agreement with Ausdrill. The facility apparently has attracted a fee to Ausdrill from Amm by way of payment of option rights striking at 15c to the total of 5000000 I can understand this OK.

But when they state that Ausdrill will subscribe to 5000000 FPO's at 10c is this further dilution or are they to pick these off the open market hence the volume close to 5000000 on Friday.

And if the answer is that there is to be further dilution then why the big jump in volume.

Does anybody feel that the FPO's will be pushed to 15c very soon just to attain the strike price for the options to Ausdrill.

This could be a catalyst to get the options strijke price reached at 30c as there is not to great a jump from 15-30 than 8-30. Does anyone share my logic.

For if the strike price of the ammoas is reached then big money will roll in should they be converted.

Surely thingsmust be getting a tad more rosy.

For example AMM is a small telco making money unlike PWT or UEC. Sure there is the IP1 administration but that is a separate issue & might not prove to be to bad a move in the long run for AMM.

Why no volume on the ammoas at all? No sellers, one would of thought that there would be millions available particularly given the belief that they are 'CURRENTLY' worthless.

I do not feel that there will be a writedown at all.

This smacks of a big game of chess.

Regards

Deuce