Ann: LKE Bonus Issue to Shareholders, page-140

It may often be referred to as dilution by you, but actually dilution refers to a shareholder's percent ownership in the company. It is only dilution if an existing shareholder does not equally participate in a capital raise that is conducted at below market prices. With this option deal (which I agree is a de facto rights issue) existing shareholders will not be diluted if they participate. If they do participate then their percentage ownership of the company remains unchanged, and the value of the company will rise by the amount of new capital raised.

Simply focussing on shares on issue is a fundamental misunderstanding of finance 101 - one in which you seem to confuse 'share price' with actual 'company value'. Cap raises at below mkt prices SHOULD result in a lower share price, but participating holders are compensated by additional shares - there is no change in financial position and NO DILUTION.

Please do not try and perpetuate false analysis in the hope of smearing management with pejorative terms.