Ann: Quarterly Activities/Appendix 4C Cash Flow Report, page-26

Yup. I hate to admit it but it looks exactly that way.

Why else would they dilute if not to try and use the ASX listed company as a profit pump? I am 100% certain that there will be some positive business direction news within the next 45 days, and the 4c too notes they expect to recover some funds too.

A loan with interest makes a ton more sense. Improving sentiment!!! Shareholders and potential buyers will take this as a much more reasonable and rational decision from the BOD..

Think about how it looks to a new investor.

1) we need 2 million so we will take a 60 day loan and repay with the recovered funds with 5% fee (costing the company a total of 100k)
2) we need 2 million so we will dilute the company by potentially 25% more, devaluing the company by 25% more.

You think that none of these boys knows anyone that would give a 60 day, zero risk loan with a 5% or so fee?
Clee can organise people to invest 50 million at 50 cents but now cant find anyone for a 60 day loan? On a company that's trading at less than its current assets? Please. Clee himself surely has enough cash to loan the company, and knows enough to know amount of stolen funds to be recovered. Maybe 100k ROi in 2 months isn't enough?

Oh and don't forget the implications of the right to take up the rights offer if you don't take it! 25% dilution in one year without shareholder approval. Nice!!!

It's pretty messed up that this is legal, but anyone with half a brain can see why this would be the chosen option.

I don't know the path forward. Try to accumulate as much as possible if you can, to keep real shareholders with more than 50% of voting rights. That's all that anyone can do.