Good afternoon AllIt’sreally easy to manipulate the share price...

Good afternoon All

It’sreally easy to manipulate the share price in a listed smaller cap company.

Aheavyweight buyer can mop up all of the loose sellers shares until such time asthe remaining PI’s demonstrate a reluctance to sell their shares whereupon theshare price starts to rise. Thereafter - the ‘heavyweight buyer’ dribbles someshares back into the market until such time as the share price starts to drop.

Suchmethodology often flushes out remaining PI’s who are worried that theirshareholding value will drop further – whereupon they offload at that pointwhich is to the heavyweight buyers gain.

Thisis the main reason why so many companies who might have considered floating onthe markets now opt to remain in private hands.

It’sall very well taking the ‘King’s shilling’ to reimburse a company’s founders oftheir time and expenditure – but once done there’s no turning back with acompany’s market cap moving forward being determined purely of the amount ofshares multiplied by the last price a share exchanged hands.

Thisis a flawed way to value a company – with so often a listed company releasingnews which drives up its net asset worth in real terms – but that news is ‘soldinto’ with the net result being that the company’s market cap is worth lessafter the released news of an increased net asset worth than it was before theannouncement.

Sadly- algorithm trading pays no regard for anything other than being able tocorrectly predict the rises and falls in share price and placing their betsaccordingly as to which way the share price will move.

Oncea company is producing a regular yield – then that becomes a different ballgamewith yield/risk being viewed against deposit account interest/inflation.

Whilstthe COI experience has been a long old journey especially for those of us in atthe very beginning with multiple capital raises and share dilution – it doesappear that as doubts are eliminated with regard to us having a viable futureand a realistic chance of moving to production – that we will be picked offsooner rather than later. The big question will be: At what price?

Thedifficulties will be those detailed above in that our current market capnowhere near reflects our net asset worth – yet that’s the way our company isbeing valued by the markets – likewise should we be a private company which weare not – then a detailed valuation would be undertaken to ascertain our truenet worth.

Thisis where negotiation skills come into play by our management team.

Untilthat time - we continue to wait and watch.

Goodluck and a belated Happy New Year to all.