It's interesting to see how this cap raise will play out.If the...

It's interesting to see how this cap raise will play out.

If the past is anything to go off there are a few scenarios.

If this is issuing ordinary shares it will probably be at a 10-20% discount based on the previous closing amount of 0.025 or the VWAP at $0.024.

VWAP: 0.0192 - 0.0216
PCA: 0.02 - 0.0225

The other scenario could be issuing options at an amount at anyone's guess.

If issued to retail investors only, the ratio of issued shares to holding could be somewhere between 1:5 - 1:10 but could be well over the 1:10 ratio. A lot of SH will have a very large holding of shares (And the cap raise would cost them A LOT!), but based on, let's say, 1 million shares, here are the rough numbers on the lower end of the VWAP.

1:1 $19,000
1:2 $9,500
1:3 $6,333
1:4 $4,750 ($9,762,527 CR)
1:5 $3,800 ($7,810,022 CR)
1:10 $1,900 ($3,905,011 CR)

Ideally, we would want sophisticatedand professional investors to match or take a chunk of the shares, as with the $600,000 cap raise prior. This would result in a ratio above 1:10 (Which I prefer).

The other scenario is purely sophisticated and professional investors which could be very good if a lower portion of shares is issued at the higher end of the VWAP or PCA.

Either of the options above would be ideal, IMO, and anything issue price less than 0.019 would be pretty stupid if you ask me. It is better to issue fewer shares at a higher price!

GLTOH & DYOR!!!