2.8c placement, page-44

will sp fall or not?

REGARDING THE EFFECT OF DILUTION:

m SHARES
961 Jan09 per website
236 placement 6.61 m$
160 spp @ 1:6 4.48 m$
1,357 total

m OPTIONS
269 Jan09 per website
59 placement
40 spp @ 1:6
368 total

DILUTION-1. (considering shares only, not options)
Most pessimistic (silly) assumption is that
the cash raised is worth nothing
in relation to value of the IG assets.

961 Shares Jan09 per website
0.036 current sp
34.60 = market cap mS

1,357 Shares after placement
34.60 divided by market cap
0.025 = diluted sp

DILUTION-2. (considering shares only, not options)
Cash raised valued at face value.

961 Shares Jan09 per website
0.036 current sp
34.60 = market cap mS

1,357 Shares after placement
45.70 divided by market cap = $raised
0.034 = diluted sp

One should argue that the cash is worth MORE than face value as it provides ability to unlock wealth.

This suggests sp will NOT fall to 2.8, therefore all will take up entitlement, and this week you can buy more on market to participate, which could in turn send sp UP briefly