They have bought it on the cheap($465,000) in cash terms.
But because they have limited funds, they will be giving them shares, which will further dilute the shareholdings, and price of the stock.
They now are up to 535mill shares on issue, Boonan i guess had no other option, but its getting up there now, plus it says in the annoucement a further rasing of 1.5mill at no less then 1.5c is on the cards.
Share price will struggle until placements are stopped and good money flow starts coming in.
Still the deal looks like a good oppotunity to get in on the cheap.
Cheers.
STI Price at posting:
1.8¢ Sentiment: None Disclosure: Held
