1:34 consol + $21m placement, page-14

Im just amazed than anyone can put a positive spin on this announcement. Work out the figures.

900mill shares @ 2.5c = $2.25mill marketcap

consolidation of 34 to 1 (is that a record) makes 26mill shares @ 85c = $2.25mill marketcap (still)

placement of 210mill shares = (210+26)/26 = dilution of approximately 9

your shares now valued at 1/9th of original marketcap = $270K total or your shares valued at 1/9th of what they were.

Take into account shares were trading at around 8c for a while, that makes 1/4 of 1/9 = 1/36th. So from a year ago your shares are worth about 1/36th. And thats all its worth if you dont dig into your pocket and buy some of the issue which the company is kindly offering its loyal investors.

Now with shares consolidated at 85c and an issue of 8 or 9 times that at 10c, where do we think the shareprice is heading?

At the end of it all the shares will be back around the 10c mark but your holding will worth 1/36th of the price it was when the stock went into a halt. Even if it manages to double that price you are still 1/18.

Then the other question is how do they plan to raise $21mill does from their screwed investors. Who is under-writing? My guess is this is all done to help the bank maximise their clawback of lent money.

Its all but over I'm afraid! Nice to see creative money-haggling at work though. If only directors were as creative with their business ideas.

Cheers