dilution of share value again???

I'd love to hear from any investors on this - does Virotec's latest announcement consist of ANOTHER massive dillution of the share price? Surely this is an outrageous abuse of existing shareholder's rights?

27 August 2003

Virotec International Ltd (“Virotec”) announces a Placing (the “Placing”) of 25,000,000 new ordinary shares (the “Placing Shares”) at a price of GBP 14p (approx AUD 34cents).

Chairman and Chief Executive Officer Brian Sheeran explains, “The purpose of this Placing, which raises approximately GBP£3.4 million (approx AUD$8.2 million) net of expenses, is to assist in the implementation and expansion of the Company’s strategy and to respond to growing investor interest in the UK. We believe significant market opportunities exist for our wide ranging remediation technologies in the UK and the rest of Europe.”

The Placing Shares constitute 14.9 per cent of Virotec’s current issued share capital.