article, page-2

It would be misleading to believe the "source" formed these opinions recently.

The article is actually dated 8 Jan 2008.

Re comments made by a number of people regarding a rights issues, I am not convinced. Main reasons are that current market conditions make it very difficult and it may not be the most optimal from a shareholder value perspective. Raising funds at 15c seems a very expensive alternative. A rights issue would (?) also require the CEO to confirm a profit outlook, which may be at odds with past issued guidance.


A small asset sale seems more optimal. They only need to raise enough cash to get them through to around April/May. Even if the sale is at a less than optimal price, it would appear more optimal than an equity raising at an extremely distressed price. Another factor is the certainty an asset sale provides over a rights issue that may or may not be taken up.

I accept they have rejected the notion of a partial sale in the past, but that was old management. Thats my current thinking for what its worth.