figures speak for themselves

Seeing the latest announcement, I decided to put together a few figures

You all may remember this statement by the company regarding FMG's decision not to go ahead resulting in OBL subsequently going with OXX.

The Directors of OBL believe that, by contrast with the prior proposed transaction (refer to OBL’s ASX releases dated 15 November 2012 and 15 January 2013), the present transaction is more of benefit to OBL and its shareholders.

The present transaction offers the Company certainty. There are no shareholder approval requirements and the terms of the transaction are certain. The transaction does not merely create options to enter into a transaction or transactions. The shareholder dilution effect of the transactions is minimal with Octanex only acquiring 15 million shares and a like number of June 2014 options, compared with the previous proposed issue of 120 million shares and attaching 100 million long (4 year) dated options exercisable at 9 cents.

So this is what we stood to gain from the deal with FMG

Total dilution– 220 million shares (inc opts) for $13.2 million


This is what we received instead since that announcement

Total dilution – 102.4 million shares (inc opts) for $1.3 million

Summary 220million shares-102 million shares = 118 Million shares for a difference of $11.9 million

In order to equal the deal with FMG – the Directors need to achieve a Capital raising at 10c per share for the difference of 118 million shares or there about.

From the perspective of our current situation, it looks pretty bad. Time will tell whether the statements I listed at the beginning will become true. The upside is that the Directors are are trying to minimise dilution through trickle feeding funding, which is an approach I expected them to take.

Any constructive thoughts.