Would appear an unlikely scenario considering the raising is to...

Would appear an unlikely scenario considering the raising is to pay down debt, which will reduce interest payments and increase profits/earnings.

I thought MJS's post was about right with the numbers:


(ii) With a quick and dirty "$16.56M less $1M interest less $3.5M tax provision give $12.06M profit". Actual profit will be less than that due to amortisation, however given that is now a "legacy" issue and not needed to pay down debt can be considered a cash surplus. A generous PE of 10 would see market cap of $120M or 4 cents.

So the possibility is to buy 1 cent shares that potentially become 4 cent shares, with little else changing in the business.