Ann: Non-Renounceable Rights Issue , page-17

abdm

"a s/holder approved rights issue is the only way they can accumulate shares"

I'm sure that all SHs would have been happy to approve the issuance of performance shares to directors based on the share price. For example, X Million when the SP gets to 10c. A further Z million when it gets to 50c and so on. If they are so confident in their operations and a subsequent increase in the SP then this is surely a more ethical way of increasing director shareholdings, rather than strip every shareholder of 26% of their wealth in one announcement.

If, as some suggest, a big announcement with GSK or P&G is just around the corner then why are they wasting their time, money and effort on a piddling $2 million "go-it-alone" project? Surely a big deal would render this whole exercise redundant. All it does is ensure that there will be close on 2.5 billion shares floating around the market.

Clues, dot joining and speculation about why there is so much secrecy are all very good. The reality, I'm afraid, is that this is a very poor move by management which offers no firm direction and adds even more risk to the company's profile. Sad day for all holders.