capital raising, page-9

Hi technicals4me,

I too am surprised by the capital raising, however it is relatively small. This is the best way to do capital raisings, small and incremental (see how many BOW et al did over it's time).

The details of the capital raising, according to appendix 3b (and in more plain language), WGP:
-Issued 18.5m shares (12m at 2 cents and 6.5m at 2.1 cents )
-Issued 41.5m options (35.5m at 0.1 cents and 6m free)
=$412,000

Total securities on issue now stand at:
-320m ordinary shares
-190m 5 cent options 01-Oct-2011

3m 2.75c options expiring on 31-Oct-13
5m 5c options expiring on 31-Jul-15
95m 3c options expiring on 31-Oct-15

Therefore, total diluted shares (in the money):

-320m + 30m = 350m shares

If we get to 5 cents, diluted shares would be everything above:

-320m+190m+3m+5m+95m = 613m shares and a market cap of 30m.

Cash on hand however would be much higher too, with options being exercised (people might decide not to exercise, but for the purpose of this exercise)...

We have an extra:

$12.68m of cash in the bank if ALL options were exercised in due course.

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As at now, we "should" be funded for the time being. I've said that before...and the market tended to agree (positive reaction) but we were wrong! At the end of March, our cash balance should look like:

Cash on hand at 31/12/2010 - $246k
Plus cash raised:
$562k + $412k
Plus tax rebate:
$211k
Less estimated cash outflows this quarter:
$232k

TOTAL:

$246k + $562k + $412k + 211k - $232k

= $1.12m cash on hand at 31/03/2011 (projected)

Should be enough?

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Market capitalisation as at now:

350m * 0.028 = $9.8m

A bit more than the $2.5m when I first invested at ~1.1 cents, but the outlook is more certain. I'm happy for now, but like anyone, would be happy to see the last of the free options and capital raisings for now...even if they have been small (ish).