disconnect

I have seen several hundred placements but rarely do we see capital raised at a premium to a struggling share price. Phylogica has managed to raise new capital at a 100% premium to the recent market price. The terms of the Converting Note Placement can be simplified as follows:

- sophisticated investors are prepared to pay up to 5.3 cents per share in a market where sellers are prepared to sell for half that amount.

If the share price rises above 6.6 cents by November next year then the converting notes will be issued at 5.3 cents. Its a measure of the confidence of some long term investors in the Phylogica business model and the ability of management to deliver.