irresistable, page-3

not a bad deal considering. 6% is a good rate for non-bank capital. although a slight concern is that interest can be paid by way of new shares - not ideal from a dilution perspective. they must have shown some decent pipeline numbers to get a US insto over the line.

in terms of dilution (and taking into a/c the shares in lieu of cash for interest payments), let's say they draw down the full $6mill and the sp is at 50c at maturity then the maximum no. of new shares (assuming they 100% convert) is 12M (ie a tiny dilution), however, if the sp grovels around in the current canyons and reaches the not so lofty peaks of 5c then dilution is about 30% - with another 120M new shares (again assuming full conversion). that's a substantial dilution (but i've witnessed much worse). if it is at 0.015c floor then i will not be a holder.

roll on the good news announcements - big orders, big deals and new markets - US and Asia awaits!!