Hey Capraise, The announcement says:'The New Shares will...

Hey Capraise,

The announcement says:

'The New Shares will beissued at a 20% discount to the five-day average volume weighted share price at the time of issue of the New Shares (back pricing mechanism) and will be offered to Eligible Shareholders (as definedbelow) free of brokerage and fees.'

The only shares being issued at 2.4c are those to the vendors of Primepower Queensland.

This acquisition doubles the revenue of Babylon and provides geographical expansion, complementary technical skills, greater credibility with customers, potential for new service offerings and more financial power. We have seen the benefits of roll up acquisitions when done right and this is usually reflected in strong share price growth over time. I am sure Babylon are planning further acquisitions in the near future. With Patersons on board and underwriting the SPP, we may see more publicity and investors jumping in. Market cap of $8.5 looks pretty cheap at the moment given the potential revenue growth.