Ann: Letter to Eligible Shareholders - Entitlement Issue, page-3

Yes, the directors have said they intend to take up their full entitlements - and (in addition) partially underwrite the issue to the tune of $200 000.

The offer document notes that the company has 'produced a positive underlying EBIT for the past two calendar quarters' - so that's a second positive quarter under their belt. The turnaround continues. Plus they've signed two offshore distributor agreements for their products - so potentially some export sales coming up.

It's a good move to reduce debt in my view. And I like the fact that they stabilized the company before going to shareholders for funds. This substantially reduces the risk of the funds disappearing into a black hole.

All up, I think this is more good stuff from SRH.