ann , page-46

'Completely disagree. It could also be said that management WERE NOT CONCERNED because they had every confidence the oppies would be well received.'

Sorry jd, I was not stating an opinion. That was the word from the horse's mouth. Underwriting options means the underwriters get the options free-gratis ie they only have to exercise them realising an immediate profit (in this case on current prices around 23c per share - or close to a 100% profit). Management are not keen to give shares to a group who have had no prior committment to the company, thereby diluting shares for long-term holders. Under-writing them also tends to create an overhang as the buyers are not generally considered long-term holders but looking for a quick stag profit (especially in these circumstances where the oppies are well in the money).

I specifically asked the question of underwriting and was very satisified with the response.