Ann: Updated Investor Site Visit Presentation, page-16

My thoughts on the dilution argument that keeps popping up:

Share count will reach roughly 800-850m (currently 502m outstanding) if all Dr. Li's investments are made and his options related to performance (sales growth) are achieved. That is slightly less than a doubling of the share count while revenue - (If the targets are met) - will be over 10x greater than today.

I agree dilution is never favourable however if we are expecting someone to more than 10x the current business then it seems reasonable that he is paid commensurately.

Summary: The dilution will be meaningless if targets are achieved AND the dilution will not be as extreme if he fails to meet the targets.

Also: I doubt Dr. Li will be accumulating shares at even 9c when the investment prices that have been negotiated are significantly lower - Tranche waiting for shareholder approval is to purchase shares at 5.4c.