I'm trying to look outside the square with this in regards to...

I'm trying to look outside the square with this in regards to whether current holders will take up entitlements.

From spp ann earlier in month-
(In accordance with ASX Listing Rules, the number of securities that may be issued by FML under the Plan cannot exceed 30% of the number of fully paid ordinary shares already on issue. In the event of subscriptions exceeding the maximum permitted, shares will be issued on a first-in-first served basis.)

Given that there are currently 778,824,986 shares on issue,30%=233,647,495 shares so the first in first served as put in the announcement will not become an issue.


Also from spp ann-(The directors of FML have assessed the capital requirements of the Company, in the medium term, are such that the proceeds of the SPP will be a minimum of $4.0 million totalling 72,727,272 shares.Should applications total an amount less than $4.0 million, FML has retained Azure Capital to place the shortfall with sophisticated investors).

In other words if us holders don't take up the offer Azure will find others who will.

Now how many holders of FML are out there?

As of 26th Sept 07 there were 3,893 holders,with another 80 with unmarketable parcels.Now i didn't hold, back in September and neither did a few blokes who I know have since bought.Lets say roughly atm there are 4000 holders.

If 50% of holders take up the full offer.
2000@$5000=$10 million/181,818,181 shares.
If 25% take up offer=$5mill/90,909,090 shares.

So after looking at all this mumbo jumbo,
a)I don't think the first in first served will come into play.
b)I don't think Azure will be looking for sophisticated investors to fill up shortfall.
c)There is a possibility that FML could raise slightly over the minimum $4mill that they want out of the s.p.p.

Especially if we do see a small spike above 6c over the next week or so.Most would then just sell a few on market to get the funds to purchase through spp at 5.5c.

But with the maximum allotment being just over 90k of shares,it means alot of the big boys won't bother trying to manipulate it up in order to sell and get in cheaper thru spp.

I will be going to get a bank cheque Tuesday!

Good luck to holders,I don't think we will see much action in first half of April but bring on May!