wishful thinking, page-2

I was first to bring up a possible underwriting. At the time it was possible and made sense. Now with the timeframe and sp, it is unlikely unless another announcement is due next week.

In fact an underwriting at this stage will hurt existing holders if their is no followup announement.

Becuase the underwriter will get a fee just for being underwriter. Usually paid in new options or shares. They then get paid a percentage of the amount underwriten.

In this case the percentage needs to compensate them for the difference between ex price and current price. Note they dont pay for the option itself.

So basically, the option would still be out of the money and unattractive for us to convert, but would be profitable for underwriter to convert. Equivalent of a placement to them at 1c now. Only they would get free option and start the merry go round again.

However extension (in a form) is still possible IMO. They need money. As soon as PNOO expire the will do a very similar rights issue to January 2010.

Fully paid holders will get 1 share for every 5 held(roughly that ratio) and PNOO holders most likely will get a similar offer although ratio may vary.

The January 2010 rights issue also gave free attaching PNOO, so once the existing ones expire, expect them to be quickly replaced.