capital raising and equity stake, page-22

LORD

Your prognosis has been pretty good so far and it looks like Gunns is still pretty far away from securing a JV partner.

This Richard Chandler guy seems to want a large enough stake that I can see a small dilution for existing shareholders but no where near the 50% as suggested by some. Probably price the new equity shares at 10c.
That would be needed to keep existing retail and institutional shareholders on board and from bailing out + GNS is looking to raise money from them.

The company must outline in tomorrow's announcement where the pulp mill talks are.

Overall I'm quite optimistic of Gunns. The level of debt at $580 million being reduced possibly in half by the equity raising and along with further asset sales could potentially make GNS close to being debt free by the end of the year.