I don't understand why people are having such a hard time...

I don't understand why people are having such a hard time comprehending the placement at 3c

There are two possibilities that I can see.

1. it had been lined up in advance of comming off the trading halt, in which case the price of 3c would have been on the high side, and there would be some serious doubts as to the legitemacy due to the deal being done before the info was avaialable to the general market (ie serious case of insider trading). For this reason I'm discounting 1 as a possibility.

2. The deal was done after the trading halt was lifted. IMO The price rise to 9c was purely driven by day trading and was completely unrealistic (for a single day gain). Look at the volume nearly twice the number of shares on issue was traded in one day, the only way that can happen is if people are buying for gains only and selling the same day, and not because of any fundamental reasons. The closing price on that day was 5.5c anyone looking at the facts of the days trading would have a healthy skeptisism and would not believe that the price rise was sustainable in the short term. Due to the speed that INL needed to act to close the gate on la-jolla I think that they did well to get 3c!

ANY cap raising usually takes into consideration the volume averaege weighted price over a recent period, the huge volume the day the trading halt came off will have skewed this quite a bit higher but it would be interesting to know what the vwap for the preceding 2 weeks was.

Anyway just my oppinion, but I think that the outcome is much better than having a much higher dilution that would have resulted if la-jolla was to convert the rest of the shares that were entitled to.

Tony.