Ann: IronClad to raise $7.5 million , page-11

It would be very positive for IFE if they could raise all the capital required for the project via equity. However I doubt that they will because of their 50% ownership by TRF.

The biggest issue impacting IFE is this 50% ownership and the fact that the executives of IFE and TRF only hold shares in TRF so they are very reluctant to to have large equity issues as it dilutes the value of their holding's in TRF.

IFE has just announced this raising of 7.5M. I have to wonder why they did not go for 40M and be done with the financing. Maybe they think they cant get a issue of this size away, Maybe they dont think they can get a 20M issue away for TRF or maybe they will still sell off most of the IFE holding to get the remaining capital.

This 7.5M raising baically replaces the 4.4M share issue that did not proceed. That issue was for completion of the bankable feasibility.

The 35M of MCCM capital still has to be found.

So in my view very little has changed. The project is still unfunded and the main issue would appear to be the RSPT as major investors are not prepared to put money into the project.

My biggest concern still remains that IFE may still have to give away most of stage 1 to get the ultimate funding.

It would be much more beneficial to IFE if they would just go to the market issue another 50 to 60M shares and get the capital.

Until the financing issue gets sorted I think the trend will still be down.