@mooroolbark - good observations. Nonetheless from what it...

@mooroolbark - good observations. Nonetheless from what it appears, the raising would be either be a placement in the 10% discretionary new issue allowed which is normally pre-approved, or above the $2million or so mark based on previous announcements on the convertible notes, but below $5million.

I don't see a 1 for 1 capital raising at this stage as it would be very hard to get shareholder approval. For now the most likely scenarios as up to 10% to private sophisticated investors, which will be conducted at or above VWAP, or a 5-10% raising to existing shareholders around 4-4.5c to raise at least $2m and in the range up to $4m as per announcement 1/7/15.

There's no reason to provide a massive discount on the capital raising at this stage as the last capital event was at 3.5c and based on trading volumes, interest in the counter, and information on hand, there would be plenty willing to chip in at 4c and above up to about 5.0c, me included.

Please note also that Protean does not require sophisticated tooling or manufacturing plants to produce, and could mostly be completely outsourced without much burden on SCM. I glean this information from direct discussions with SHE management, and my own experience in EPC, fabrication, and manufacturing. Marketing and commercialization is likely to be done through partners (again from my discussions with SHE management), and would require minimal capital. Finance as an IPP is trivial once a bonafide PPA is signed with a reasonably credit worthy end buyer, either governmental, merchant, or government linked utility. This provides my reasoning that the CR will not exceed $4-$5m and would be closer to the floor of $2m as it does not make sense to upset the existing shareholder base by diluting unnecessarily at this point.

I also bear in mind a large dilution would also dilute the major shareholders and management of the company, and they would either have to come up with large amounts of capital themselves or also risk being diluted.

My personal opinions only and DYOR.