Tim Thanks for sharing all your research and taking the time to...

Tim

Thanks for sharing all your research and taking the time to write the blog. You've had an interesting journey so far and it's good to see you can attach some humour to it as well.

I'm wondering if you or another poster can help with a question that I think is almost impossible to answer at this stage; Approximately how many shares are going to be on issue when the most recent loan is completed? I know there are
817m now
approx. 500m options expiring Dec 2016 (I think they'll all be converted).
Magna have converted $225,000 worth perhaps another $525,000 worth to come?
But the terms of the recent funding I can't work out. The announcement says:
"The loans can be converted by Magna into NSL ordinary shares at any time during the term at a fixed price of 200% of the average VWAP..." Does this mean $5m worth of shares to be added??
We also pay "5% fund raising fee via the issue of ordinary shares..." (I'm assuming that's 5% of the drawdown amount) so 5% of $600,000 would be 3m shares @ $0.01 each and
"will also issue the equivalent to 50% of that loan value in unlisted 3c three year options, e.g. $600,000 initial loan drawdown results in 10 million unlisted 3c options."
My best guess is somewhere north of 2 billion shares on issue. If that's right then we need to make much more than $4m profit each year to justify a share price of greater than $0.05
With so many shares on issue I often see companies as unappealing, more from a psychological point of view not a fundamental one. Do you think a share consolidation maybe considered in the future?

I definitely think the company has targeted the right market. I see India today as where China was maybe 15-20 years ago and they have a lot of catching up to do in terms of infrastructure and that means steel. One buyer I think will open a very big door.

Cheers
GLB