S3 XT, page-17

Why would the company risk everything by giving shares before announcement of receiving cash? What is the gain? So easy to catch. Why would any body buy shares at 0.05 when they could but at 0.038 I wouldn't, would you? My guess this is some probably 110M of the first exercise. They were probably sold in a prearrange sale to several entities and were just registered with the ASX at 2:40. they were never traded on open market. Mt K is a private hedge fund. They do not want to have to register anything more than they have to about there activities. Yes it is speculation but I really doubt you will ever see them hold 5% of the shares. There is just too much public fillings they have to make if they hold 5% or more.

In US options are not registerd as a purchase when exercised. I never saw the 135M block show up. Did I miss it? Let me know what day if you saw it.

Do not assume any thing on the price. It could be lower than what we saw. MT K could have made a good will payment to the buyers to lower the purchase price while still showing a higher sales price. I have seen Venture corps do this quite often to keep price up while giving the buyer a great deal to dispose of stock the VC holds. It is totally legal. Mt K then gets to keep the good will as an asset on the books and depreciate over a period of time. Win win for both. Look at balance sheets of a couple of corps that have been doing M&A You will find a good amount of Good Will on balance sheet. When MCP bought NEO much of it showed up as Good Will giving a clear indication they over paid.

During DOTCOM the GOOD Will was growing exponentially on many balance sheets. That's when I sold and started buying PUTs Some Good will is not bad. Like many things it is proportions that signal problems. Just like Receivables and Payables.