cap raising: massive dilute for retail holders, page-2

In summary:

(1)They have issued 41.5 million shares to sophisticated and international investors at 21c, raising $8.7 million.

(2)TIS had approx 169 million shares on issue, so we are seeing a dilution of approx 25%

(3)They are then doing a 1 for 10 rights issue which does not appear to be underwritten to raise an additional $4.5 million

(4)The new holders under the 8.7 mill placement can participate in the rights issue

(5) the 1 for 10 issue will be based on a issued capital of 210 million shares, so will result in a further 21 million shares being issued.

(6) The total number of shares under the placement and the rights issue appears to be about 61.2 million shares which dilutes existing shares by about 36%

(5) There is a top up facility under the rights issue so that holders can seek additional shares above their entitlement.

(6) Presumably, many smaller long term holders who are totally fed up with TIS and its management will not subscribe for shares under the rights issue.

(7) Presumably, the new placement holders will subscribe for their full entitlement and seek top up shares

(8) In short we are seeing sophisticated and institutions grabbing 36% of the company at 21c per share.