the facts as i understand them

The Facts as I understand them

FACT 1.
There was not any secret about an upcoming placement

This was mentioned back in 24/4/2008 in the “Notice of General Meeting

RESOLUTION 5 – ISSUE OF SHARES PURSUANT TO A PLACEMENT
Resolution 5 seeks Shareholder approval for the allotment and issue of 50,000,000 Shares at an issue price of not less than 80% of the market price for the Shares calculated over the last 5 days on which sales in Shares are recorded before the day on which the issue is made, or, if there is a prospectus relating to the issue, over the last 5 days on which sales in Shares are recorded before the date of the
prospectus (Placement). The identity of the subscribers to the Placement is unknown at this stage. However, the Directors envisage that the Placement will be made to professional and sophisticated investors as defined under section 708 of the Corporations Act, determined at the Directors’ discretion. In any event, none of the subscribers
pursuant to the Placement will be related parties of the Company.

This was then ratified at the General Meeting of 27 May 2008.

FACT 2.

The Board and Paul Jury

There is no evidence that either have tried to lower the share price. In fact, it would seem very strange to have a Board , many who own shares and options, to trash a share price especially during a bear market. There has only been conjecture about “mate rates”.

Macquarie Bank
Macquarie Bank was made the placement broker at a commission of 5% or $600,000. It was a set percentage and although it would have been easier for Macquarie to get the institutions and investors onboard at a low price there was absolutely no financial incentive for them to do so.

Other Institutions or Sophisticated investors.

These, or their brokers, would have an incentive to having the share price lowered. During many of the preceding weeks I believe there was a lot of share manipulation taking place. There seemed to be a lot of churning of shares, sometimes enormous capping and the constant bashing of the buy side of the market depth.

If I was on the board, or Paul Jury, I would be asking questions of Macquarie Bank about what was happening. In turn, if I was Macquarie Bank and wanted to keep my reputation (whatever that is like) I would be checking the broker codes and try to work out who was doing what.

During the last couple of weeks the manipulation seemed to have tapered off. The trouble is when the share price is in free fall during a bear market it may take a while to stop it falling even when the manipulation has finished.

FACT 3

From today’s announcement the shares were placed with “a broad portfolio of institutional and sophisticated investors”

FACT 4

We are in a bear market and it may be fairly difficult to get funding. I do not know what the sophisticated investors and institutions were willing to pay.

FACT 5

There has not been any "changes in the substantial holdings" yet reported so it doesn’t seem as though the Escrow Shares have caused the damage

FACT 6

If we want this company to grow we have to look to the future. To grow we need to have a sentiment change so that new investors are attracted to the stock. If I came across the CDS thread as a newcomer over the last day I certainly would have doubts.

I know many are annoyed because of what has happened with the manipulation but we have to move on.

FACT 7

We have a company that has
- Stacks of coal in an energy hungry world.
- Top, and I believe honest, management
- Funding for the next year
- Heaps of positive announcements to come

I think we should all take one of these and look forward to the future.