The more interesting point is that they have substantially...

The more interesting point is that they have substantially reverted to their Retail holder base to try and raise this time round.

On 26th November 2010 they raised via a 10m placement with institutions at 1.20 per share, which was a 5.9% discount to the SP.

Having burnt these holders they now feel their best chance to raise is a heavily discounted rights issue with is predomiently retail based (due to the low number of institutional holders remaining on the register).

Who has been selling down heavily the last year? - institutions I bet.

Even with the heavy discount I wouldn't be surprised if the retail component is undersubscribed. Management credibility has eroded as fast as the capital base.