Ann: Rights Issue Shortfall Notice, page-3

Morning BrassTacks1 and all,

IF you can accept the announcement at face value then this is indeed good news. It reduces/ eliminates the risk of these shares, put to the underwriter, quickly re-entering the market so that they can exit their position.

A conspiracy theorist, however, would wonder why the MOD share price fell so far below the already heavily discounted offer price, in what some may consider an unjustified way. Perhaps, so that nearly 5% of the company could be secured cheaply via snapping up the non-exercised rights by existing shareholders.

Alternatively, if LIM was already very keen to enter the register then why did MOD need to pay underwriting fees in the first place? Why not simply have a placement deal with LIM for the shortfall.

Probably nothing, and good that MOD has secured the funding required to drill the Kalahari full of holes.

I will raise a cynical eyebrow if MOD miraculously goes +5c in the very ST, but am happy to have benefited from the recent MOD SP weakness.

Cheers
john