Some HC posters seem a little confused about the terminology...

Some HC posters seem a little confused about the terminology being used here:

First.. a non-renounceable rights issue means that you can not sell your right to buy an option for 1 cent... it is important to note however that the subsequent options that are issued to you (if you take up your right and pay the 1 cent) will be listed and therefore tradable on the ASX, much in the same way that the previous 30 June 2009 20 cent options were..

I would anticipate that if the stock is around these levels that the new 12 cent options would trade around 3 to 4 cents.

I agree with TCF and believe that this is a good deal for existing shareholders, and for the first time we are being offered something.. Of course their good friends at Cunningham's are still being looked after (being offered the underwriting, so get paid $250k fee and opportunity to pick up any loose options that existing shareholders do not take rights up for.)

My take on this issue is this:

I believe that GDN already have enough cash to complete testing, but realise that if (for some unforseen reason) the flow rates are not what is expected, they will struggle to raise cash in two months time, so are therefore using the current testing anticipation to raise some additional funds to see them through the next 12 months if the worst case scenario (heaven forbid) was to eventuate.