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Hi Cleveland21,

That's understandable. Strange though that the SP would fall so much if it was such a great opportunity.

Other companies (eg BSM) have got capital raisings away despite the fall of head shares to close to the cap raising price on the strength of the story.

This story appears much stronger.

I also didn't see any of the Directors increase their holdings from the cap raising - I may have missed it, but why not? As most are Lawyers from ME, they aren't short of Dollars, and then there is Mac Bank and H.

The situation is now - they need cash to grow sales, inventories and to add new distributors and marketing. With only two Quarters of cash available (at current burn rate) now they will either be restrained in their ramp up or have to go to the market again.

Thus, a cap raising to sophisticated investors may be required and this would have to be at a steep discount to current SP given the failure of the previous effort.

The story has captured my imagination but the smoke signals from the failed capital raising makes me hesitant.

There have been numerous examples where a great concept/ product has not been executed effectively and the original owners have gone to the wall only for a new investor to pick it up cheaply and make it a success - I wouldn't want to be in the former camp (eg Meretec).

Cheers
John