Ann: Trading Halt, page-71

Given the company's recent statements, I think management cannot possibly justify a capital raising at this stage just for working capital. Working capital requirements could and should have been anticipated many months in advance. Any call now for working capital would call the financial management of our company into serious questions in my mind relating to their competence.

The same argument applies to any other easily anticipated capital requirements such as commercialisation, service setup, distribution channels, etc. These are all easily anticipated and must have been addressed in the company update.

Similarly, a special capital raising to facilitate institutional involvement is not only unnecessary but potentially illegal. It would certainly raise questions to me about the ethical standards of our management. The market is open and the shares are available. If institutions want in they can buy their shares on the market. Companies don't get to bypass the market and hand out shares preferentially just because some broker gave a good lunch.

The discount bothers me enormously. Why do this when all the fundamentals are in place for our shares to attract a premium?!

Logically therefore the capital must be required for some specific, particular purpose that could not have been anticipated by a reasonably competent management team. The discount would point to a degree of urgency or a lack of discretion. Clearly this is something we have to do now, and failure to act will impede our future development in some material way.

We'll just have to wait and see what that is.