You guys have all miss read it. It's an on market buy back......

You guys have all miss read it.

It's an on market buy back... not fixed at a price. Also, there are rules about how much they can pay for the shares, i.e. they can't just buy a stack on 15/5 at 2c per share. It's also capped at the number of shares due to the 10/12 rule, so they can't buy more. But also, it's a cap - so if the share price rises past the point they think it's worth doing, they'll stop buying (i.e. buy less than the 350,451,918 shares.

Further, as the price continues to climb, (if that happens) then if they do actually buy 350,451,918, it'll cost much more than $6.5m, since they'll be buying back at higher than 0.13. The $6.5m figure was simply multiplying the 500m shares by 1.3c. And this number was already incorrect, due to the number of shares that can be bought being released.

If you applied the same simple maths, on the 350m number, it'd cost approx $4.556m, but again... do you honestly think they'll be able to buy back 350m share at this price? most of the shareholders know the value of this company and wouldn't dream of selling at that price! The only reason the price is that low right now, is because of the incredibly low volumes on offer (largely pip traders).

So the number of shares that they actually do buy, depends on:
- ASIC's On Market Buy Back rules/limitation
- the magic share price value in management's mind that represents current true value for the shares (because they'll stop buying once the sp reaches this price)
- the number of existing shareholders willing to sell up under the above magic number!

hope that helps.