Another Cap Raising., page-8

Interesting ploy by management to take the capital raising route of a pro-rata accelerated non-renounceable entitlement offer, rather than a straight-forward placement

After the dubious acceptance of their last cap. raising only a couple of months ago, where the retail punters took up less than 20% of their entitlements, I reckon management could not afford for another flop.

Hence the retail portion of the latest cap raising can perhaps be interpreted as "blackmail". If holders do not take up their 1:11 level entitlement then they will see their holding diluted at a loss. If holders do not tip in more cash to take up their entitlements then they receive no compensation. Obvious course of action would be for them to sell the equivalent number of their entitlement to pay for the new shares.

If this does happen then CKF will be under selling pressure from the outset tom. Sub $5.00 is a near certainty.