it is sickening, page-7

Changle, I have been a forthright supporter for a long time and am not going to ditch it now, also in too big to get out easily. If I sold out, you would see the price down a bit more. I am seriously annoyed about the latest private issues of new shares, though I still think the company could be a goer in time if managed right. (When the new issues are made I would not be surprised to see a bit of a pump).

but moving on..

Section 52 of the Trade Practices Act 1974 states A corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.

After announcement of the GEM issue, the company clearly stated in their announcements that they would be seeking further finance but it would be on better terms than the GEM issue.

Clearly, IMO, they have gone back on this in the last issue and the one pending at the moment. The terms of these, especially the one pending, have been of great disadvantage to current holders and was not at all what was expected from previous announcements. IMO, that is deceptive conduct done in a manner which was foreseeably going to seriously impact the value of current shareholders who had previosly made decisions to buy or hold in the preceding weeks.

As far as I am aware, there was absolutely no need for these issues because there is still a loan faciltiy of $16mil available from GEM which can be drawn on as required for some considerable time into the future whilst other options are considered.

Just to remind you, the market cap is now around $8mil or less as opposed to around $15mil less than a month ago. The lower the price, the worse the dilution will be for further cap raisings. It could possibly get as low as 20% of current shares for present shareholders given the amount of money required to be raised and the low sp.

Is anybody interested in taking them to task on this in order to see if we can do one or more of the following

a) prevent any further issues on such terms (ie retrospective pricing)
b) attempt to force cancellation of the pending issue
c) if offering advantageous terms for new issues, offer them to all shareholders


BRR, are you there?