Ann: Forfeiture of Employee Options, page-11

“My sentiment changed when I saw shorts at record lows....”

Given all the other facts available that seems like a very flimsy reason to be buying.

Consider this. Who would want exposure to shares in this company (long, short, borrowed or leased) if it goes into voluntary administration. Shareholders are not creditors of the company and have no say in how the company will be reorganised in administration or whether they vote to send it into liquidation. The major creditors are the people with the power and the next set of capitalists are the only potential beneficiaries if the company happens to be reorganised in this situation. It will take a monumental turnaround story from here for shareholders to see any benefit and even if that turnaround happens it won’t happen quickly. There will be plenty of time to benefit from the upswing (if it ever happened) and with far less risk after the facts point to it being a reality. The reality now is that shareholders aren’t prepared to participate in a share offer at 7cents. Whoever took the last placement and is propping the company up is taking on a lot of risk. It makes me think there are slush funds in the market that somehow mitigate their risks in other ways as it makes no sense to me why investors would be putting more equity into this company without gaining full control. Esh