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Companies are now allowed to raise up to 25% per year in Cap raise (prev 15%). Its better because they do less cap raises but they are bigger more efficient. They need shareholder approval to go from 15 to 25% though, which is what they are looking for here. They currently have plenty of cash ($28 mill) and have no immediate need for more unless of course the well comes in and they need to fund their share of getting into production or they are looking for new acquisitions.

There is nothing sinister in this at all IMHO ... They have given themselves an option to raise 25% quite common now.

As for the shares on issue ... its not really an problem it really is the MCap that you should focus on (Price x Shares on Issue)... It's a relatively simple thing to consolidate down the road to less shares but of course the MCap stays the same... So Mcap is the number to focus on here.

The only perceived issue is some people think insto's won't touch a low priced (sub 50c) stock with a lot of shares on issue... but its really a storm in a tea cup and there are plenty of companies like FAR with insto's on the register already.

All is IMHO