Omnitrader,Your first post makes absolutely no sense at all. How...

Omnitrader,

Your first post makes absolutely no sense at all. How did this cost the company a year? How much research have you done prior to posting this?

On the contrary, I think the timing of the 95cent share issue was an absolute stroke of genius, and if they had waited another week then there is no way they would have got it away at that price, and if they were determined to get that amount of money they would have had to drop the price significantly in order to get it filled, meaning even more shares would have been on issue from that time on.

Just to make you aware, the 95cent issue was a placement to institutional investors of 64.2 million shares to raise $61 million, which was 3 times oversubscribed at the time. Yes the ar$e fell out of the market about the same time, but all those that committed to the raising were obliged to cough up the funds even though the share price had fallen below 95cents by the time they had to pay, so the funds were received and the shares issued at that price.

At the time they also announced a SPP for current holders. In the letter they said that if all holders took up their allocation they would raise $23-$24m, but in their own investor presentation they guessed that there would be 2.4m shares issued, raising nearly $2.3m, so clearly this was not a priority for them, but a small carrott for current investors who were not eligible to participate in the placement. (see page 14 of "placement completed and SPP" announcement from the 14th December 2007)

To suggest that this was bad timing and has cost them a year is, in my opinion, ridiculous.