CAG - Announcement, page-2

Thanks for posting that, MB22. To provide some history, the paying out of the convertible note holders (at a 20% premium for around half a year's loan) leads to the cancellation of a share issue of almost a billion shares at 0.5 c/share that would have massively diluted future earnings per share (presuming the company can successfully commercialise their wireless telecommunications technologies) in return for minimal cash raised. However, the company will still be issuing almost a billion shares, but at 4 times the price (2c/share instead of 0.5 c/share). Future earnings will still be diluted, but at least the company might have enough cash to see them through to sustainable profitability.

To me, the announcement seems to be good news and I was somewhat surprised that the share price did not rise today.