Ann: Exclusive Option Agreement to Acquire Balance of TSi India-TSN.AX, page-107

Two reasons why the market is selling:

1. Uncertainty - Until the market knows how the fund is raised and that TSN will have the fund to exercise the option, it is unlikely to see upward movement on sp. Less not forget that Mr Market hates uncertainty.

2. It is possible that the fundingwill be through placement either with instos or with instos and retail holders. In any case, the shares will likely to be offered at a discount and it is common for current holder to sell part of their holdings to fund the placement.

Long term, I believe this announcement is fantastic. I am sure the management is confident that they can raise the fund before they will sign the option agreement. The 100% ownership of TSI will certainly attract more funds to buy (and that's my guess how TSN will get the money). Short term, we may be in a holding pattern until we know how much the placement sp will be.

All IMO.