Hi All,Looking at the proposal it does not look positive for...

Hi All,

Looking at the proposal it does not look positive for current shareholders or future growth in share price. Opinion based on following:

After raising shares and issuing options to Iron Bridge Capital, total shares on issue will be 449,962,252.

Profit forecast for this year will be about $6.5 Million (double current profit and add in the interest expense reduction).

Forecast earnings per share this year will be $0.0144.

Price Earnings Ratio will be aroung 10 times forecast earnings. If price is based on current PE Ratio (two times earnings) then you will be looking at a share price of about 2.88 cents.

Sales will be about 16 cents per share, leaving no room for significant growth.

Given less growth opportunity, people will sell this one for taxation write off leading up until end of June.

Please do your own research before making any decisions.

Best of Luck
Lost