What happens if the flow testing goes very well and the SP jumps to say 50cps or more. Presumably they will have to proceed with the SPP at 24cps. IMO they should've waited for the results of the flow testing before setting the SP for the SPP and minimise the effect of dilution.
If the flow testing produces poor results the SPP will fail bcos the SPP is not underwritten and the SP will go below the SPP price of 24cps.
The upside for holders if the flow testing goes really well is a windfall gain provided you have $15,000 and are willing to fully takeup the offer. However, with around 7520 shareholders on the register as at June 2010 there could be a substantial scale back.
IMO they've stuffed this up!
ANZ
spp announced, page-6
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