myronc, ewere,Thanks for replying. This question I have raised...

myronc, ewere,

Thanks for replying. This question I have raised may turn out to be more or less irrelevant if there is some actual real good news about contracts etc soon causing some real demand for shares and a bit of a price rise, I hope so.

However in the meantime, after the news on Monday causing the price to go to .004 & a fairly even balance between .003 buyers & .004 sellers it has now gone back the other way again with quite a few more .003 sales and some buyers pulling their orders. I'd suggest that the further announcement on Tuesday has had an effect.

Yes, I think we deserve an explanation from management as to why they chose such a retrograde and dangerous set of conditions (for current holders potentially being very substantially further diluted) for the new note.

There are now only 14.9 mil buyers at .003, ie less than $45,000 of sellers will wipe out these leaving the possibility of our note holder converting at .0018 for 500mil shares. Only another $67,000 will take it down to .0009 for 1 billion shares, presumably as low as it can go (ie minimum price of .001 on the ASX).

If this happens, I'd suggest shareholders might possibly have a case against the directors for negligence.

What price will the new cap raising have to be to get support? Certainly less than .003 under these circumstances and then it would be likely that the majority of the issue would go to an underwriter rather than the smaller shareholders. Say they went out at .002. That's 3 billion shares. If the price falls further due to the effect of condition of this latest note issue, we could be looking at a price of .001, ie 6 billion shares.

This is very pessimistic I know, but it seems like the management is hell bent on destroying the last vestiges of confidence from long time shareholders - or perhaps they know not what they do! I'm not sure which is worse.

Yes we DO deserve a full explanation from the board.