When will IBG wake up from its lethargy and when will the fair valuation take place?, page-26

Hi Red,

With the price of IBG at 4.4c and trending lower, surely any first initial raise of equity will be incredibly dilutive at current levels and a barrier for any potential equity partner? With already 1.3b shares on issue, numerous cheap options for mgmt in a few years to cash in (8c in 4 years is hardly reaching for the sky) - what incentive is there for a partner to have equity in the project at this level? Would it not continue to be increasingly difficult to raise at a higher and higher price the more dilution there is? I would have thought part equity will only look attractive to a potential partner if there is less shares on issue - not more.

I am struggling to see how we attract the partners we need at current levels without ending up with 3b shares on issue before we have even started construction. I would love to hear others thoughts..