I'll throw this out for an opinionsay they raise at 75c.without...

I'll throw this out for an opinion

say they raise at 75c.

without shareholder approval, they can only issue 15% of the existing shares outstanding ~ 7.9million

so, if they do that, we now have ~ 60mill shares outstanding

so, if we take the 1:2 rights issue that has been thrown around here as true, then we are looking at 30mill rights to be issued, at 75c (i'd presume)

so total shares on issue after full raising ~ 90mill

Cash raised ~ 7.9mill + 30mill @ 75c ~ $28.35mill

That, is approx 2mill greater the CAPEX per the insto presentation.

So I'd presume that the remaining working capital of $9mill - 2mill would come from debt finance to be arranged down the track. Makes sense. Banks will all systems go before they need to commit funds.

As far as TRF's involvement, they would be looking at 13mill rights, exercisable for $9.75mill

The question for TRF is "how much can they raise?" I'd be surprised if TRF exercises the lot - it is a big cost, and a significant dilution for them. Also, one must remember that there is a high possibility that many TRF holders are also IFE holders, and so us poor punters are shelling out x2 if TRF issues a rights offer too!

My guess for TRF is a small RRI and a small raising to instos - 15% max. Therefore that equates to approx 12.3mill shares @ say 40c = $5mill. Take that over the IFE RRI of 30mill shares, 13mill being TRF's - that is a 50% takeup. i.e. 4.75mill rights are available for those that want them.

enough babble for one night! we will hopefully see black and white tomorrow.

Goodluck to everyone!

cheers
Split