I am reasonably happy with the new funding agreement entered...

I am reasonably happy with the new funding agreement entered into by the company.

The company has previously openly admitted that one of its biggest problem was its lack of capital and this agreement solves a lot of problems and provides the capital to fund future growth.

My only reservation is that the option price is only 3.7 cents to be paid in 3 years time.

If all goes well i would guess that the share price of 3.7 cents would be well below the market value of the shares in 3 years time and thereby resulting in a very large profit to the financier.

Nevertheless, I am sure they would argue that they are taking a considerable risk and should be paid well for their investment.

I suspect it is hard to get such finance at a cheaper rate and for that reason can accept that it is a price that has to be paid for being under capitalised.