I hear what you're saying Wayne & i understand the theory of...

I hear what you're saying Wayne & i understand the theory of horse trading but i still get a donkey ring in my head with the need for attaching options when the fully paid securities are to be issued at a price not seen 3 months & the ex. price of options 2 ticks from recent highs.

BUT and purely a BUT as we don't know until it's released.

If BTC's convertible note is to be bought back by the company or "restructured" in a sense through the issue of these options then i guess it makes some sense.

Convertible note matures on the 30/4/2011 & equates to a further 25,000,000 shares issued @ 4c for $1,000,000 in Phylogicas back account.

If you run the options to be issued against the CN then it re-sets the note (in theory) to a 5 year term offering 75% increase on the size of the note, a 125% increase in the exercise price of this option & a 300% increase in the funds derived from conversion.

CN - 25,000,000 @ 4c = $1,000,000

Options - 44,000,000 @ 9c = $3,966,300

I guess for this to really play accordingly it requires the new investors to maintain a longer term focus an not be looking for a small gain converting early then flooding the market as has been the case recently, more of an access for the company to further funds should they be required at a later date. Placing these in the hands of Institutional & sophisticated investors one would hope this is the case, only time will tell. Even on near term coversion though it would still result in money in bank & stock comforatbly tading above 9c.

Need to see what BTC's note is doing really.