Ann: Notice of General Meeting, page-251

It will be interesting to see what the note holder does next week ... considering the way the sp has been going, and the buy side of the market is at present.

I would assume that they will wait an extra day to get the lower sp for conversion ... working at 1.6c gives them an effective price at about 1.93c, with a cost of 1.27c/share.

That means they'll be trying to move about 24 million shares ... and I doubt that they will be able to sell that many shares for an average above their cost, let alone make any profit. If I assume their overheads are 10% (and that's just a stab in the dark), they'll want at least 1.4c/share as an average.

If they do dump at market (like last time), they will end up with their previous profits being eaten away as the price falls to absorb the sale.

It may end up being an educational experience watching how they manage this conversion - and give some insight into how XPE is perceived by the larger market players. One thing I have learned about venture capitalists - they are heartless bastards, and every action is self serving.

Of course, this will happen again in June and July, so that's a lot of shares to dump into the market. Then on top of that, we have the company wanting the right to issue another 100 million shares at a discount to the sp, in a move which will probably decimate the price even further. Add to that a proposal to consolidate at 2:1, the short term prospects don't look that good.