They certainly should raise some capital to avoid the poor...

They certainly should raise some capital to avoid the poor outcome for holders from utilising that convertible note facility. As I pointed out before, the holders of those loans will get over 25% of the company for $10 mill. That stake is presently worth $60 mill and the 40 million gain will be free of Australian tax. Shocking when you think this one will indirectly be paid for by Aust govt through JSF purchases.

But a 1 for 1 at 50 cents would raise too much money, and the original shareholders simply couldn't raise the cash. So a 1 for 10 would be good. It would raise about 8 million.

Of course the fair thing would be a renounceable style offer under which those who couldnt raise the cash to take up their entitlement could at least sell their right to participate to others. Or sell their underlying shares and exercise their rights.

That is the only fair way to do this sort of thing and the original shareholders would finally get some money back if they didn't participate.

I should make it clear, when I say original shareholders I don't mean those of us that participated in the float. I mean those that invested before IPO. But it would also give us long time holders some flexibility!

No, I am not one of them.