buy 2.5 cent shares for 1 cent, page-4

Would appear an unlikely scenario considering the raising is to pay down debt, which will reduce interest payments and increase profits/earnings.

I thought MJS's post was about right with the numbers:


(ii) With a quick and dirty "$16.56M less $1M interest less $3.5M tax provision give $12.06M profit". Actual profit will be less than that due to amortisation, however given that is now a "legacy" issue and not needed to pay down debt can be considered a cash surplus. A generous PE of 10 would see market cap of $120M or 4 cents.

So the possibility is to buy 1 cent shares that potentially become 4 cent shares, with little else changing in the business.