Thanks mate. You probably wont get a premium for the 'shell'...

Thanks mate. You probably wont get a premium for the 'shell' then. And if you leave the biotech sector then the IP is worthless.

But you have time on your side. A decent acquisition should still reward existing holders. You have the benefit of a very low market cap. So if the new project look promising, the market will jump on it. And decent percentage gains are possible. Goodluck.

I've been watching FLS for about a month and was keen to buy for the recap. It dragged on and I couldn't be bothered without any clear timeframe. Now next week we will learn more.

Most likely it will be some overseas oil prospect and they will raise enough to buy the prospect and a couple drills. I'd imagine $2mil for the prospect and $2mil working capital. Current market cap $900k.

So if the market re-rates the prospect + cash >$5mil then holders will make a profit from day one. Hold until spud and possible make off real well.

TDX will be in a similar boat but already have some cash, so they could raise less or chase a bigger and better prospect.

AUZ did a similar thing about 12months ago. Usually need a consolidation either before or after cr. Not easy raising cash at this level. You couldn't raise much at 0.2c, so you get forced into raising at 0.1c

Much better to do a 1:20 and get the sp to 2-4c, then raise somewhere in the middle like 3c.

It's obvious that "new money" is needed and that they WILL make money. Existing holders almost always get offered shares on the same terms. So if their is a discounted CR then perhaps buying TDX just for those rights is viable.

I would think it needs to be a SPP. Trying to raise multiple of current market cap is difficult. SPP gives the best chance of success. Also set record date into the future to allow late comers to earn their entitlement.