Next step is for someone to stump up the $7.5 million as part of...

Next step is for someone to stump up the $7.5 million as part of the CR.

I just checked the Company Research page on Commsec. Before tonight's update the figures are alarming. Market cap is just $14 m (which will be down to $12 or $13 million tomorrow. And the Shareholder Return (before today's disaster) over the last year is -89%. I doubt if AL did any worse when in charge of Soaring Securities!

It is scary to think of the damaging dilution spending $7.5 Million on shares will have at a 20% discount to the current price.l It will give the new cornerstone investor well over 40 percent of the company according to my back of the envelope calculations, perhaps closer to 45% depending on the SP at the time. Could be they are waiting for the SP to drop another pip or two further. The only silver lining to this particularly bleak result is that it could be a white knight, such as Dr Wenjun Sheng who knows he can easily turn $7.5 million into $75 million in about 3 years just from the success of the Telink connection.

However, whoever it is, they will be easily able to control the destiny of XPED in terms of asking directors to take a pay cut, "inviting" AL to step down from CEO, finding a new PR person, finding a new corporate advisor, appointing an independent director and chair etc.

A lot of pain on the dilution front, but could be a game changer if the new cornerstone investor is who I hope it is.....