The placement through Macquarie will bring new insto's on board...

The placement through Macquarie will bring new insto's on board and management apparently have acknowledged that this will not please some shareholders (the long term faithful ones) and they have said as much in the dcoumentation by referring to "dilution" as a potential outcome of this transaction.

CM have said they will participtae and Regent have declined. This may be due to CM being flush with funds and Regent not.

However, existing holders such as me, most of you, the Board and Management and CM & Regent are only eligible to participate in the SPP. This would mean that irrespective of your holding size, you can only apply for the maximum of $15000 worth of shares at the determined price (if, say $3 then you will receive 5000 shares, if it is not oversubscribed which it will be).

Seems to me that management have taken the calculated risk of financing in this manner in the hope / belief that the share price, EV etc will offer enough upside to exising sharegolders that they will be satisfied.

If we end up with around 130M shares on offer the SP would need to be north of $4.50 for inclusion in the ASX300, and index inclusion seems to be something they are mindful of.

I hope they are once again proven correct.