placement at 25 cents - news just out., page-3

Hi DaveR,

I've never been able to understand why anyone would want to put money into a grossly out of the money placement in the first place.

Mind you, they are getting 26% of the company for the two outlays. If they are in any way related to Resouce Equities then they will effectively have bought control with just over fifty percent of the company held between the two shareholders.

If that is the case then control of the company would have passed without a premium being paid to all shareholders.

This is of course purely speculation but looks like it could be why the shareprice isn't going anywhere...

Cheers,