to reiterate my opinion re issue price:Assumption: The effect of...

to reiterate my opinion re issue price:

Assumption: The effect of capital from issue itself makes no difference to market SP.

At 50c issue, if you do not participate, the issue will be hugely dilutionary. This would be reflected in a SP fall to maybe 85c.

So your immediate paper loss is roughly $1.2 minus 85c per share.

If you DO participate -

Issue is not dilutionary. This is relfected by SP being somewhere in the middle of last closing SP($1.2) and issue price(50c). Your holdings should still be your total previous holdings(in $ terms) + new money put in.

Bottom line: You snooze you lose. Non participants should be the only losers.

If the capital injection is seen as positive, maybe there will only be winners, though the biggest winners would be the subscribers. I believe that at current metal prices this issue is a great way to back up my intial investment in KZL.

ps - I don't work for KZL ;)