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I have a feeling that it has to happen at a minimum of 5c per share. I think there is rules in the asx that the minimum issue price of an IPO is 20c per share and as this is basically a reverse takeover I think it is treated the same way as they are issueing more than 15% and changing the type of company it is. This is why the need to call the EGM and then suspend the stock. It becomes a new company and is treated very similar to a new IPO thus the reason why they are doing the capital reconstruction to bring it up to the 20c and why the capital raising is being done at 20c.

After speaking to management yesterday they seemed very confident of finalising their funding requirements. They mentioned that it was taking longer than expected but were confident of a very successful outcome. I got the feeling that there would be a pleasant surprise for shareholders throughout the conversation. I expressed my concern that raising that sort of money would lead to a lot of stock coming onto the market it was placed to retail clients. There reply was that it may be placed to one institution only which if I read things right means that there will be no stock coming onto the market for a quick turn as if someone invests that kind of money then they are in for the long haul.

DYOR