good buy at 2-3c? , page-28

KB2

The directors are taking up their entitlement of 13,605,947 shares and underwriting 10,784,254 shortfall shares.

The initial security against the secondary loans from Santo and Molton is 50% of the Turkish gas assets. The loans will be paid out from the proceeds of the placement, thus negating the implementation of the charge over all assets.

If the placement fails and the loans cannot be paid, Otto will probably go under anyway, so there’s no real increment in risk.

And in answer to Salty etc, I will be taking up my entitlement. I will also apply for shortfall shares.