rights issue or work of art

So $700k in the bank, with a quarterly burn of $2 million...

Intitial rights issue to raise $1.5 million will get us through the next quarter.

Then, co-incidentally, on the 31 May when cash is about to run out again, we will all have our option to buy at 1.5c, so will raise enough to last another quarter (thanks to the $300k cost cutting on Donnybrook hoho)

But what if the price on May 31 is on or below 1.5c??? Then no one will exercise their 1.5c option and where will the company get money to run??? Fan-club of today will tell there is no possible way the shares will be worth less than 20c on May 31, but fan club of the future, in the future, when the sp is less than 1.5c, will say don't worry, when you excersise your 1.5c options (even if it is out of the money at <1.5c, watch this space!) you still get your THREE extra 2011 options (which expire on Dec 31 2011, so may as well be 2012 options, or so I imagine the fan club dejour will have you believe if this transpires) which makes it worthwhile right?

At least it will buy us a few more months in the game.

This rights issue is the most complex carrot thrown at a bunch of simple donkeys, but it is quite well worked to make sure the coy is going for at least 6 months, I commend the forsight of the architect, and knowing what will pull the strings of current holders (of which the majority will be involved no doubt) at every step of the way. Nice work!

Dont even get me started on expired option holders being allowed to over apply for shortfall. They know us too well!

Brilliant.