Yes, 1B hypothetical obscured the viewpoint. Any estimation of...

Yes, 1B hypothetical obscured the viewpoint. Any estimation of how undervalued TMR is would roughly be the rate at which this money would need to increase to add shareholder value.

For instance, if management believes TMR is valued at 23c as some other posters do, then this 11.5c would need to increase at the same rate as the rate in which the price returns to fundamentals.

Say I bought in at 23c. SP drops unfairly to 11.5c. Hold because I have faith in management and fundametals. Diluted by 10% at 11.5c for 10M. Share price raises back to 23c. This 10M would need to become 20M at an increase of 100% gain for the value of the placement to be worth it.

1B is a hypothetical, my point wasn't "once this happens, then we lose 100M on the company". We both agree nothing is certain and 1B is anything but.

My point being, either management believe TMR is ridiculously undervalued, in which case the return on the capital would have to increase at the same rate as the undervaluation of the company for it to benefit shareholders

OR management believes the company is only slightly undervalued, and in this case the capital raised would only have to make a gain of this slight undervaluation to increase SH value.

Either way, it's either very bad for SH value OR very bad for those that believe how undervalued TMR is, and the first scenario is correct in my firm opinion. It is very contradictory or illogical.

You could argue the reverse of this. If the company ISN'T undervalued then this is the right thing to do, and if the company IS undervalued, then shut up and be happy you have an undervalued company, but I want my returns, and so do those shareholders who are sitting on 20c buy-in with the belief that THIS was fair value.

I appreciate the option of SH first, this gives us certain advantages as opposed to non shareholders at the present time. If some outstanding news is released within this month, then this will be a major advantage.

HOWEVER, anyone can currently buy TMR shares at 12c at the present time! If no news to drive the SP higher in the current month appears, we have a 4% advantage to non-shareholders. The only real benefit, and admittedly it is a good one, is the abiltiy of time on the option. To get any benefit out of this 4% advantage, we have to raise capital ourselves, a real pain in my situation. It is my belief SP won't break the 12c barrier south due to the current circumstances but there is always the possibility it could on momentum.

I and other posters could be wrong about this and perhaps the SP will raise within the timeframe, in which case I would be happy to be proven wrong. This would benefit a small investor like myself, but still wouldn't help investors with a substantial amount of TMR.

Finally, why on earth would they announce such an option after such a worrying report when people were already considering selling out? If they are that confident on the "staggering" results of Arco Iris, why not attempt to gain capital at this time? Always the possibility they will release this within the deadline, but why not wait?

Also they only recently stated in Feb no capital raisings were envisions. I overstretched myself on TMR as previously stated with this statement a major consideration, and it is only 2 months later. As stated, I haven't agreed with the credibility issues other posters have with them, but in this case, their word needs to mean something especially in the issue of the shares themselves.

Again, if my logic is correct, whatever ratio management believes TMR is undervalued, this is the ratio by which the capital would have increase for it to be worthwhile. Given management believes this ratio to be so high, someone would surely loan them money at a much lesser rate.

Still have faith and don't want Mr Callaghan fired, this is the first real issue I blame on management directly, but damn.