A Call to Chris Wood - Questions Please, page-29

How two scenarios can yield such a change in sentiment and direction.

1. Share price at 1.6 cents (Punter A with 1,000,000 shares worth $16,000 @ 0.016)
- Consolidation of shares 2-1 happens. Share price now 3.2 cents (500,000 shares worth $16,000)
- Most likely share price declines to previous lows as sentiment poor. Won't factor this in though.
- 7.5M of "Future Placement Shares" are offered at 20% discount. Not sure if all will be placed.
- Share price immediately decreases 20% to 2.6 cents (500,000 shares worth $13,000)
- NET RESULT: Directors happy as their value has not been diminished (will still work for share price increase though), share holders unhappy as their value diminishes. Sentiment poor.
288,461,538 shares added to register as part of raising (7.5M * 2.6 cents)

2. Share price at 1.6 cents (Punter A with 1,000,000 shares worth $16,000 @ 0.016)
- Directors buy on market at 1.6 cents up to 3.0 cents (750K worth)
- Sentiment raises as directors buying on market is always good. Possible increase further in share price. Won't factor this in though.
- Consolidation of shares 2-1 happens. Share price now 6.0 cents (500,000 shares worth $30,000)
- 7.5M of "Future Placement Shares" are offered at 20% discount. More likely will all be placed on back of sentiment increase through director buying and lift in share price
- Share price immediately decreases 20% to 4.8 cents. Normally happens regardless of sentiment (500,000 shares worth $24,000)
- NET RESULT: Directors working for increase as they are behind due to 20% discount. May look harder into raising money and it's pitfalls on shareholder value. Shareholders happy. Sentiment good.
156,250,000 shares added to register as part of raising. (7.5M * 4.8 cents)

This is merely a fantastical example, and yes I know there are many other factors.

I know what I would want to happen though. On market rather than 20% discount.