Agree entirely, InterestedToo. The scheme reflects badly on...

Agree entirely, InterestedToo. The scheme reflects badly on management who appear not to been much concerned with the rights of existing shareholders.

The STORM trial was originally slated to begin mid year, then it gradually dragged out. It, and the randomized CALM study, many months ago were stated to be 'imminent' and to 'soon begin'. Now we find STORM will begin Q1 2014 and the second half this year for the CALM follow-up. There has been no explanation offered for the huge delay in commencement and why their forecasts were so badly out.

Imagine if the STORM study had begun several months ago. Yes, our cash outlays would have been higher in the last few months, but we had over $3 mill on hand at the end of December that could have supported STORM. Then imagine what VLA's price would be now, if the market were expecting the first results of STORM to be delivered in only two or three months....is 40c to 50c a reasonable expectation?

We are now in the situation of making by far the biggest capital raising ever at a price not far from the lowest it's been in the last five years. There have been only a few months in which the price was lower than 28 cents. So why sell down existing shareholders entitlements so cheaply?

If we assume that STORM commenced somewhere near when it was supposed to then it's also reasonable to assume that a new issue a few months later would be near 40 cents. Instead of needing to issue 97 million new shares at 28 cents to raise $27 million, we would have needed only 68 million shares at 40 cents for the $27 million.

There seems to have been no recent attempt by management to boost the VLA price before this massive dilution. Existing shareholders will own only 47% of the company if they don't take up their small 1:6 entitlement. Someone else will own the company now!!! Not the loyal, long-suffering shareholders.

And while it's good that there is some certainty in now being funded until at least the end of 2016, the main beneficiaries are the new shareholders, not us! So let's think of how the existing shareholders could have been better looked after - maybe a significant dilution, but only 30 million shares offered at 40 cents (not 90 million!) - giving $12 million to last a year or two, then another issue after STORM comes in, at 50 cents to $1 per share.

Directors hold a TOTAL of only a little above 100,000 shares. Their no or low cost unexpired options total only about 3 million options - so directors and the CEO don't have much alignment in values with existing shareholders.

Entirely unsatisfactory.