Re the Chinese, it would not be unusual for the shares to be...

Re the Chinese, it would not be unusual for the shares to be held in an Australian holding company, and thus possibly eligible to participate. *If* they are not participating, I suggest it is because they choose not to.

If the chinese don't participate, they will be 50% diluted - not a positive move by a major shareholder with board representation. Still, they may have their own cash issues.

I don't see MPS as a desirable substantial shareholder - they are in it for the fees. If they do get a large amount of options (and I suspect they might) they will form an overhang and further weigh down the stock. If MPS wanted a substantial stake, HMC could have just issued them shares at 4c - one quarter of the dilutionary effect.

This strange fundraising structure is not used when an ordinary structure would have worked. This is a funding move of last resort - they have tried other options for months.

They have raised just enough cash to fund the expansion, so there is no cash left for a dividend. I agree that a dividend would push the price up and may get some options exercised, but they ain't going to pay out their sparse funds for options which *might* be exercised.

All speculation. Hopefully it turns out OK.