Ah yes, they have "raised" $6m you say. Well the face value is...

Ah yes, they have "raised" $6m you say. Well the face value is actually a bit more than that but that is only part of what should concern you. Let me explain,

There were several resolutions shareholders were asked to vote on at the EGM. Aside from resolution 7 and 11, the resolutions were in essence clearing old debts, issuing shares for fees etc so any shares issued under any resolution other than 7 and 11 does not apply to the amount that KBL has authority to raise.

Resolution 7 allows the company to raise up to $3m by using the structured placement facility which has been offending most holders. To date, by my calculation, KBL have raised in real cash $765,000 using resolution 7 but which has a face value of $900,000. That leaves an addition ~$2.1-2.35m that can be raised anytime withing 15 months of the resolution pass date.

Resolution 11 allows the company to raise $6m at 80% of VWAP within 3 months of the resolution pass date. So far they have raised $2,491,876 of which most are described as "fees" so not really sure how much is cash. In any event they still have the capacity to raise an additional ~$3.5m under resolution 11

Any money raised by the issue of options to shareholders was done via prospectus. Any shares or options issued under any other resolution were to settle old debts/notes or to pay facilitation fees to the 'investor'. These do not count towards the ceiling that the resolutions impose on management.

As it stands there are 27 outstanding notes that have been paid for and were issued under resolution 7 that are yet to be converted.

Tell me there is no more serious dilution coming....