GGP unless they strike oil will soon be 0.1c and have a line of...

GGP unless they strike oil will soon be 0.1c and have a line of equity. They will raise $7.5mil by issuing shares everymonth to Lind who will then sell and repeat the process everymonth. Highly destructive to sp and why it is in free fall. If it hits 0.1c their will be huge pressure from Lind to consolidate so they can scalp the 15%.

They also recently had an underwriten rights issue that was huge failure.

PNO dont have the luxury of funding gaurantee and the sp cant fall any lower. Puts them in a bad position when trying to raise funds.

You gotta ask yourself would you participate in another rights issue? And at what price. Last one failed at 0.2c and although progress has been made, you'd have to anticipate it would fail again at same price. And I doubt it would be underwriten at that level because they still haven't offloaded.

So that means raising at 0.1c which potentially would succeed. But I doubt it. Their wouldn't be a market to sell into.

I'm not saying a consolidation is the solution, as Jovann said it would hurt him and anyone who didnt average down. But unless we see an sp spike before the next cr, I don't see many other options.

Their is no doubt $1mil con notes is a negative. We strike gold today and tomorrow they will convert and dilute us. They are just sitting there waiting. Paying them out would be a win for shareholders imo.

Debt isn't an option unless the numbers turn around.

CR isn't an issue at current sp.

Interestingly Celtic do provide convertible notes, they issued $1mil to KAB last year. So IF we can start turning things around we could use that as bridging finance. Buy us 6months. Get sp up. Then raise and payback the note.

Then their is OBJ link and possible funding from them.

The final and easiest option is the consolidation. If PNO was debt free and fully funded, I think sp could rise alot from this level. I could see it reaching 1c pre-consolidation levels.

This quarterly will give us an indication of which option is most likely. If we have trimmed costs we might have an extra month or two which is significant. Or sales might surprise on the upside.

They might always opt for a small placement to sophs. They have used this method every year that I can remember. But at 0.1c and capped by 15% rule they would be limited. But it might be enough to see out 2013.

October will be huge for PNO. Two products and plenty of marketing and focus from the Master Games in Geelong. However we fund ourselves, their will be a spike in the back half of 2013 imo.