If we assume that the issue price of the new shares is 5c, then...

If we assume that the issue price of the new shares is 5c, then they will need to issue around 4 billion shares to collect the $200m (so the offer will be 4 to 1).

We have seen similar scenarios in the past and the outcome of each case is different, but all of them have one thing in common which is the immediate reaction of the share holders (always negative).

At least MDT now has a very good chance of survival. I understand that the share price was trading above 10c for few months but it was also trading at 2c in march 2009.

I see the proposed recapitalization as good news.