What this seems to mean is an increase in share cap by approx....

What this seems to mean is an increase in share cap by approx. 60.85% for $3,414,146 increase in capital.

Should an investor take up their full rights issue at 0.08 ps, then shares held can be increased by a max of 40%, thus unfortunately still suffering a share percentage holding dilution.

Example - 200,000 shares held - which represents approx. 0.285% of 70.1m shares.

Issue offer 2 for 5 eligible to buy at $0.08 = 80,000 shares


Under new cap with full rights taken up (purchase of 80k shares) ones holding turns to approx. 0.248%

Doesn't sound like much when put like that, however if my figures are right that equates to a min of 13% dilution of share holding. Or put otherwise on a holding of 200,000 shares on the present cap of 70,100,000 shares, one suffers a loss of 26,000 shares in holding percentage.

If one does not take up the rights issue, then ones holding on 200k shares turns from 0.285% to 0.177% a dilution of 38% at the proposed share cap.

In short (as I said if my figures are right and I would love someone to verify)

Sit and do nothing = approx 38% dilution.

Take up full offer (40% of holding or 2 of 5 @ 0.08) = approx 13% dilution of present holdings.

The above figures are approximate without getting into to many decimal points. I've been over them a few times, but does not mean there's not a fundamental flaw in my calculations, so do check them before working out your own position.