Ann: Trading Halt, page-19

I finally have something nice to say about something or someone associated with FAU and then I realise they did this. Same old FAU I'm afraid. They have form on the free options at raise time.

There was one instance around two years ago when the cap raise pump was especially successul and expectations of very solid results to follow at Gimlet were high but unfounded. The share price tanked once assays were released and as this raise was only to top 20 holder's a number refused to pay up. The result was a further discount AND a truck load of free options that of course got dumped.

Sophs love these raises. They were most likely the ones dumping today at 1.2- 1.4 and using the funds to buy their new issue shares with attached free options. Many will dump either the free options or the new shares in short order over the next couple of weeks.

As the last poster said be wary of the pump in the short term. This is how the distribute to retail. Remember there is literally NO known near term price catalyst. Not a single drill rig is spinning right now and there are NO assays due. Not this month. Not this year. Even if they start this long overdue drilling program in Gippland today it was 16 weeks from start to assay release last time. It may well be mid-February before results are known if this is repeated. Sophs will sell into stength and there will most likely need to be a lot of churn to get this SP moving in a sustained fashion.

PS if you're a soph who paid 1.2 and dump your 1:2 free ops at .4 the effective cap raise price is 1 cent. That's one hell of a discount from the 1.4 it closed at prior. I guess you need to ask yourself why they need to discount so heavily to secure funding.