Ann: Announcement of Entitlement Issue , page-5

I don't understand this ....

How can you sell options to buy for 0.001c when the option lowest price is 0.001c ?

As they will not get the money they need (good money after bad) they say they can sell the 0.001 shares anytime after.

This means the share price will permanently be on 0.001c which means a 50% reduction in price.

What would have made sense :

- do the 100 for 1 now
- lest say the price comes out at 20c
- then you can do a SSP at say 15c and sell options

Now that the prices is 15c, you may be able to sell the option for a few cents

Any reason why this isn't the way to go ?

Cheers