VinceGood to see you having a bit of a look at this one.You are...

Vince

Good to see you having a bit of a look at this one.

You are right that the Mr Squiggle chart is a gem - looks like it might have been created by my 7 year old nephew.

However, this is shaping up as quite a strange situation. And much more serious than having a giggle at a make-believe chart from fantasyland.

The presentation that you pointed to contains a number of clues as to what is going on here. Reading between the lines:

- Winteray is a new firm that has raised somewhere between $5 and $8 million (ASIC filings suggest $5.6 million see here: https://www.esearch.net.au/pdfs/498814.pdf. This is at odds with the info set out on slide 7 of the March presentation)

- For an investment firm, there is a heck of a big "promote" between the seed capital raising at 10 cents for $5 million and the later rounds attempted at 30 cents!!!! No serious runs on the board yet - just froth and bubble and having their foot on a few projects. [Slide 7 again]

- Having their foot on 6 projects - as set out on Slide 9, was a key selling feature in trying to get the additional fundraising completed. At least one - the deeply troubled REW (this is the 2008 float which was announced as closed. . . .it's just that most of the float proceeeds weren't ever received) has not gone to plan and Winteray has only invested a much smaller sum than was originally envisaged. Don't know the full story but you can see some of it in the REW announcements.

- I have trouble understanding the Draft Balance Sheet as set out on Page 38. However, the magic for how the total equity of $7.71 million grows to $29.4 million seems to come through Winteray taking equity in projects at very low valuations immediately before they then float at higher valuations. Pallane is central to this approach and looks to account for about half of the total uplift.

- Note once again that the Share Capital set out on SLide 39 is at odds with the information currently available from ASIC as purchased this arvo and set out in the link above. Not only does the Share Capital at 31 January look to be grossly overstated but based on ASIC filings it looks as though they did not get any of the raising proposed in March sold.

- Note that they claim a number of times in the preso that the Pallane deal is 100% sub-underwritten. it would want to be - given that Winteray appears to have way less than $12.5 million in issued capital, which is the exposure under the underwriting.

- However, if they do have 100% sub-underwriting they did a stellar job of getting it put away. I have been around markets a while and I would be full of congratulations for these guys if they managed to get subbies to hold firm for a full FOUR - SIX MONTHS. The underwriting agreement was signed in February from memory!!! A miracle.

- Given the extension to the offer announced friday there must be pretty serious questions over the quality of the undewriting / sub-underwriting. I have never ever seen an underwritten offer extended.

This is starting to smell a little like the sardine sandwiches that my father used to make for my primary school lunchbox.

I just wonder where it will end. The guys at Grannus Securities who are corporate advisers to this one would be wondering what they have gotten themselves in for!