Ted, ANY convertable loan is imho a possible problem but a long...

Ted, ANY convertable loan is imho a possible problem but a long way down the track...

For example DDT could do a convertable loan over 2 years - the cost savings they have alluded too in Ian Allen's wage + salespeople being employed under increasingly commission terms would more than compensate for interest repayments...

The facts are that more than 1 month ago the company came out with a bizarre announcement stating it is "exploring options to raise capital" - talk about waving a red flag to a BEAR! investors have abandoned the stock with one brief exception in time (a few days after the release of a very bullish newsletter)..

my problem is that the board appear to be failing to release news which could see the shares trade much higher and hence the company get a much better deal when doing a rights issue, convertable loan!!!

in my opinion, to find out that the company has won a deal with 8 universities in the united states through a google alert or by reading hotcopper is a clear example that directors are in breach of their duties under the corporations act. do they have a motive for wanting the shares at such low levels? perhaps they want to underwrite the rights issue themselves?

due to the lack of disclosure we can only speculate.

cheers.