Ann: Appendix 4D & Half Year Report, page-9

They have not learned a thing following the previous failed cap raises.

They hope to raise $6 million through a cap raise & will accept over-subscriptions for another $3 million. They then hope to raise another $1 million with a rights issue.

That is their big mistake. If the rights issue was attached to the cap raise the price could be at a premium to the market price not at a discount which destroys the share price. If the price of the rights issue is not attractive enough (the share price collapsed last time they tried this) shareholders will not take up their entitlement but may take up the options instead. Do not make shareholders pay for the option (it only raises $1million) attach it to the cap raise entitlement & increase the entitlement price.

It is so simple even company directors should be able to understand it.