What a massive sell down after the capital raise. I would have...

What a massive sell down after the capital raise. I would have had least expected it to hold at its issue price of 6 cents per share, but no that is not even the case.

I think the main reason for the sell down is the debt for equity shop. Those entities and individuals in the debt for equity swap were allocated 103,869,159 shares in exchange for their debts. These people did not acquire their shares for the purpose of a long term hold and all they want to do is liquidate the issued shares as best they can and as soon as they can to recover as much of their debt as possible. On top of this you have got both traders and investors alike who have been rattled by the sudden down turn in price, lost confidence and sold out.

Overall I see it as a good buying opportunity and have topped up myself as the basic fundamentals of the company have not changed. However the future of the company will depend on its ability to grow its revenue and all holders of the stock are dependant on that prospect.

Despite being a good buying opportunity it is still going to take some time for the market to adjust from its oversold position and then hopefully we can look forward to better times.