This company seems to be offering shareholders a devils choice-...

This company seems to be offering shareholders a devils choice

- IPO gets away and shareholders massively diluted with near doubling of shares on issue, or
- IPO fails and debt probably defaults

Shareholders are all being squeezed. This should never have happened.

Always good practice to look where management is putting its money. Haters will say they've already put heaps into the equity. But with stock at 17c, even management will be seeing this as sunk capital.

Now by reneging on their representation to the market that they would participate in the Feb placement, and instead putting money into the notes, they have stepped ahead of all other shareholders in priority and almost assured a default if the IPO fails and they cant find more capital quickly. If that happens, the debt owners are in the box seat in any negotiations over the future ownership of the company. Of course, that hasn't happened, but if it did, I reckon management would come out of that negotiation in a much better position than anyone who only owns the ordinary equity.

With capital markets close to closing again, the risks are enormous IMO.

BTW, best to ignore MST research on the upside case as the analyst hasn't even factored in an IPO capital raise! Doh!

This is definitely a company where people need to do their own homework! Good luck out there. It's a mean world, particularly for shareholders of companies that don't have a majority of independent directors to protect the little people.