Seems to be that the capital raising is required for the...

Seems to be that the capital raising is required for the expansion of the Bankstown facility.

This was first indicated by QHL in their company strategy released to the market in June 2015.

Section 5.0 Outlook in today's Quarterly Announcement states one of the short term objectives being "increasing manufacturing capacity for JSF future growth". As we all know, manufacturing for the JSF program is currently undertaken at Bankstown.

Gathering from news abroad, it is anticipated that the JSF program will increase its orders "three fold" from 2017.

So it would be safe to assume that QHL is aligning itself for this expansion of the JSF program.

It would definately take the best part of 2016 to complete the expansion of its manufacturing facilities from procurement through to final testing and commissioning of its plant.

Although this would seem positive, still does not represent a new aeronautical/defense contract which has elusive for QHL since December 2014. It would also seem that JSF Vertical Tail program is lagging behind and still in a qualification process.

Putting the value of this capital raising to be in the order of $15m - only a guess.