Ann: Netlinkz Entitlement Offer Prospectus, page-6

Having had a bit of time to think about it, I conclude that JT has played a blinder. The company was down to its last $100,000. Essentially bankrupt, they must have been choosing which bills to pay. And yet, even with the share price below 3c, and no end to the slide in sight, he still managed to find an underwriter prepared to risk ponying up $15m.

The institutionals have clearly had enough, offering only $1.72m. That leaves retail shareholders to find $13.2m. Come on guys, dig a little deeper, you know you want to! Those salary and bonus payments to the board are not going to pay themselves!

This deal represents a near 20% dilution, and yet there are still people who are publicly saying they are going to hand over more money, if only to reduce their average cost. They are clearly oblivious to the fallacy of sunken costs, or even basic idioms like "throwing good money after bad." The underwriters must be relying on there being a lot of these people.

But underwritten it is, which means they will have nearly $10m in the bank. If JT takes his bonus, that is $2.2m into his pocket (worth every cent!), then, even with sales heading towards zero, the remainder should last them into next calendar year. Shame about the shareholders, but hey, those guys always come back for more, right?