Ann: Completion of $5.4 million share placement, page-36

Gassed there is a difference between existing shareholders who have continued to hold and ex-shareholders who have sold out. If anything the former have shown the most support to the company by continuing to hold. The latter could be any 1 of 3 groups:

1. Investors who take a long term view but simply did not like the debt burden on the balance sheet, or had some reasonable rule about how much % loss they wear on their entry price before selling

2. Punters as you call them, daytraders, ST traders, etc who are in and out on any pump, etc

3. Institutions & SI's who may have had holdings, subscribed to CRs or underwritten them, etc and go for their 10-20% and move on the next deal

Those 3 groups of people who have sold the stock are the ones who have pushed the price down (in the absence of demand for the stock). We can blame them for the SP decline but in reality these groups simply react more quickly to economic stimuli than the longer term holders.

The new subscribers to this CR are not necessarily any better or worse than any of the above. We cannot assume they will stay on board for the long term - some will some won't as always, only time will tell.

In terms of caveat emptor I would say that the subscribers to the current CR has one advantage that previous holders have not had. That is, the company went to them to raise capital on the basis that the debt would be reduced - given the stronger balance sheet the company on paper looks more attractive than with the higher debt burden, so its been a good deal presented to them that they liked.

In terms of my previous analogy this is akin to all previous shareholders and ex-shareholders basing their buy/sell decision on a product that the company didn't do market research on to see if they objected to a high debt burden.

Now the company has done the market research, found out that the market doesn't like the high debt burden and presented the product to the market in more attractive packaging, i.e. the company has listened to the market and hey presto the market has responded better. No rocket science there imo its economics and marketing 101.

My first statement may have seemed outlandish to you, but I responded because that's the way you come across with your comments. All I'm trying to do is explain my perspective on this, not have a go at you, btw.

Cheers, Sharks.