Hello fellow investors,I do not post too often, but here are a...

Hello fellow investors,

I do not post too often, but here are a couple of possible scenarios:

Assumption 1
Amount to raise $100,000,000
Discount (assume issue price of 9cps - 40% discount)

m.capt at close 348,000,000 m.capt post raise 448,000,000
# shares issued 1,111,111,111
sp incl. Dilution 0.1305

Assumption 2
Amount to raise $50,000,000
Discount (assume issue price of 7.5cps - 50%)

m.capt at close $348,000,000
m.capt post raise $398,000,000
# shares issued 666,666,667
sp incl. dilution 0.1332


I simply took the last day trading prior to capital raise, however 5 to 10 day vwap is more appropriate.

The 40 and 50% discounts are quite steep, but possible. It should also be noted that sdl's prior capital raises have been quite reasonable - 30% the most significant in mid 2007 based off a 5 day vwap.

Another scenario that is also plausible was presented by secondlevel - there is no reason as to why the issued shares will not be offered at a premium; however, considering current market sentiment this may not be likely.

Just a few points to note from my perspective. Time will tell...

Please note that I am a holder in SDL and, more importantly, that the above is not to be regarded as financial advice in any form whatsoever.

Kind regards,
Oneil