Next 12 months, page-2

Agree the Kentgrove facility may be significantly dilutive.

And the announcement of it on 1/7/2016 "UPDATE ON HEART FAILURE TRIAL AND FUNDING OF CLINICAL OPERATIONS" page 2 "Key Terms of the Equity Facility Agreement" para 3:

"For each placement, Mesoblast will receive funds from Kentgrove Capital via the issue of shares at a volume weighted average price (VWAP) based on the sale of Mesoblast shares by Kentgrove Capital over the placement period less 4.5%, which cannot be less than the minimum issue price determined by Mesoblast."

is unclear.

IE:

1) "based on the sale of Mesoblast shares by Kentgrove Capital over the placement period" - does this mean Kentgrove sells shares to create the VWOP price? and

2) "which cannot be less than the minimum issue price determined by Mesoblast" - what if the Kentgrove VWAP price is lower than minimum determined by Mesoblast?

In a falling market with declining cash, this is potentially materially dilutive. "The venture capitalist's classic squeeze".

Disclosure: I bought shares for the first time on 11/8/16 at $1.42 and sold on 24/8/16 at $1.41. Currently hold NIL.