cut off day for issue.company reply, page-2

re: cut off day for issue (for rocky) Hi Rocky

Like you, I am disgusted by the lack of info surrounding the issue.

The thing that gets me is we don't know why the issue is being made. Shareholders can wear a significant dilution (which is what this represents) if its purpose is to fund a specific project that offers strong revenue potential or a foothold in a burgeoning market. In the absence of such information, doubts as to the reasons behind the raising can have a bearish impact on the stock, causing it to drift so low that the discount incentive to take it up is compromised.

QPX disastrous capital raising for "sophisticated investors" last year bears witness to this; it belted the share price while failing to attract enough subscribers. I really hope ZYL's management do not emulate this staggering stupidity. Shareholders need info on the reasons for the issue now in order to know how to respond. If it's a simple cash crisis, expect a stampede for the exit but if it's to fund contract obligations, new deals etc I'm sure there will be renewed interest.

I am a keen follower of this company's exciting technologies and have a significant holding so I'm not going to bag management gratuitously. I simply feel that shareholders deserve more respect. Announcement of a discount offer (and the significant dilution it represents) that is unaccompanied by the info needed to assess the merits this prospect entails is unacceptable IMO. Further info needs to be made available immediately.

What are your thoughts on the likely reasons behind it?

R/Gupper