Why would management want to raise $2m now and again next year...

Why would management want to raise $2m now and again next year and the year after? It is obvious they need cash right now, however I suspect they don't really need the money in the future, if they did then we should all probably start to worry given the high volume sales we have factored into the price.

So why have they done it this way? If they need $2m they could issue 6.6m fully paid shares at 30 cents but would not be possible with shares currently selling at 22. Maybe they would need to issue say 13m at 15 cents. This could then upset the scientists knowing the shares are only worth 15 cents, who might then want double the amount of shares they have been offered.

Therefore it was clever to issue $0.30 shares (the opes floor price)in the guise of partly paid to $0.10. This way share holders think they are getting a good deal and it maintains the perception of value (and as a bonus pick up additional funds over the next few years even though they don't need it (or do they).

Contributing shares would also appease their bankers who would also be more inclined to maintain their credit knowing that if things go bad they can always have the receivers chase the contributing share holders for $4m.

Just my thoughts as I can think of no other reason why they would do it this way.

von.