update

I called Valad today asking a couple of questions regarding directors buying window and also the McCabe D4E proposal.

I asked how long the buying window is open for and if they are allowed to purchase given they have reported that they are negotiating a debt 4 equity swap, which you'd assume is sensitive information.

I was told that the window is open for 30 days from the time of the release of their results (27/2/09) I was told that the results included all information valad were obligated to release in other words they do not have any further information at this stage for the market thus allowing them to buy.

I asked about the D4E swap and why management viewed this favourably.

The response I got was that they like the fact that it shows McCabe's (as a director) confidence in the company as he proposed to swap a guaranteed cash payment for equity in a company that the market values as being high risk. So it's not as though they like the proposal simply to enable them to survive.

The deal if available WILL need to be put to a share holders vote as it involved a director.

Valad DOES have sufficient cash to meet this requirement without the deal not including any cash received post the results.