Ann: Capital Raising Update , page-19

Interesting thread and accompanying thoughts. I always appreciate well thought out and reasoned views, even if they differ from my own.

For mine, this raising has generated mixed messages.

I still wonder (like some others) why the raising wasn't delayed even a few months until after seismic results are out for KN-1. If the result is as positive as early indicators suggest then surely the raising would have been on better terms?

The raising is for further development work in the UK, which, if the purchase goes ahead will not be until 2010. They did not have to raise funds prior to confirmation of the UK purchase.

As I alluded to in an earlier post, and mentioned by Surandy in this thread, I am extremely interested in the take up of rights by Directors. Their holdings are quite substantial, and would no doubt have hurt the bank balance if they fully participated.

If they did, it would be a massive vote of confidence in the prospects of KEY. I'm not sure if the structure of a raising like this is somehow tied to the Director's own existing holdings?

The trading on the heads and the subsequent undersubscription is a negative. A nod and a wink to those close to the company would have resulted in oversubscriptions, if the news was all good (IMO!). There is always a chance that I'm wrong, and the Directors have used it to build on their holdings at LT bargain basement prices?

I'm watching with interest any announcements made in the next month or so.