starting to stir, page-13

Re the Chinese, it would not be unusual for the shares to be held in an Australian holding company, and thus possibly eligible to participate. *If* they are not participating, I suggest it is because they choose not to.

If the chinese don't participate, they will be 50% diluted - not a positive move by a major shareholder with board representation. Still, they may have their own cash issues.

I don't see MPS as a desirable substantial shareholder - they are in it for the fees. If they do get a large amount of options (and I suspect they might) they will form an overhang and further weigh down the stock. If MPS wanted a substantial stake, HMC could have just issued them shares at 4c - one quarter of the dilutionary effect.

This strange fundraising structure is not used when an ordinary structure would have worked. This is a funding move of last resort - they have tried other options for months.

They have raised just enough cash to fund the expansion, so there is no cash left for a dividend. I agree that a dividend would push the price up and may get some options exercised, but they ain't going to pay out their sparse funds for options which *might* be exercised.

All speculation. Hopefully it turns out OK.