G'day Mongrel.I'm definitely not saying the 5c pricing based on...

G'day Mongrel.

I'm definitely not saying the 5c pricing based on the VWAP etc. is unreasonable.

What I am saying is that the price had doubled or thereabouts from 6c up to 11c on the previous 3 days trading when management stepped in with the announcement.

Management did not dream up the idea of doing the rights issue at the pub the day before. For sure they were planning it for a weeks if not months.

My point is that the rise was unexplained and quite possibly Management had as much idea as to why it happened as I have ... which is totally idea.

Given that rapid rise, I would still say there was no need to rush forward. It would have been better to wait a week and see what the share price did. For all I know it could be 20c by now or it could be 4c. The fact that a whole bunch of shares are coming available at 5c will act to cap the price and reduce trading until the results of the raising.

As to whether the offer is designed at keeping existing shareholders loyal, I would not disagree that might be a spin off effect but the main reason for the issue is to raise money - period. The company certainly needs money to push its very good book of projects which I as a shareholder have a lot of faith in. Unfortunately, the raising is being done at 5c rather than at some of the lofty levels we were at 2 years ago. Again unfortunately that is life in the big city.

Another point that you have overlooked is that this offer is not available to all shareholders ... only ones registered Australia and New Zealand.

I am not based in either of those places and will be left out in the cold. Personally, I would be much happier if the company got hold of all the "rights" of ineligible shareholders like myself and sold them on market to enthusiastic shareholders like yourself who could put up the fresh 5c per share. If I couldn't contribute I would like to receive a cheque for forgoing my rights and also know that the company was able to raise something from my allocation which I can't get because of my overseas status.

This compared to having the option to trade the rights to someone who wants to take up the offer - thus ensuring the company maximises the amount of cash it receives from the offer.

Honestly,as far as the company is concerned it does not matter who pays up, so long as someone does. As far as the shareholder is concerned, if you don't take up the offer whether renounceable or non-renounceable you are going to get diluted no matter what. Not sure about your argument on this point.

And finally, A RAIDER of THX !!! Come on Mongrel, let's get serious. If I ever read about a hostile takeover on THX in the next few years I will definitely seek you out and buy you more than a beer with the proceeds I will receive from the raid.

But in signing off, I hope the company gets a good take up amongst those eligible holders and I wish you and all the forum good luck.