Ann: Appendix 4C - quarterly, page-13

"They have spend a lot lately. A capital raising is likely I think. "

I agree; I think there's a 60% or 70% chance they'll raise capital.

However, while most capital raisings are for "bad" reasons (e.g., to repair balance sheets due to financial mismanagement), and result in share price under-performance, sometimes capital raisings can be interpreted as being a good thing, if done for the right reason.

For example, if SOM did come to the market for funds, but its management articulated that the RSS program was running to expectation and that the additional funds were therefore being sought to accelerate the RSS program, then I suspect the market would be falling over itself to participate in the raising, and at no significant discount (if any).

And the share price would surely rise in such a scenario.

Also, given how close they are to cash flow break-even, any capital raising would not need to be overly material in quantum, maybe $10m or $15m would easily provide them with the working capital buffer they might need.