3 March 2011 – placing

The company has announced that it is placing 160 million shares at 10p. Existing shareholders will have mixed feelings with regards to this. On the one hand it is no secret that the company has required new finance and this puts the business on a firm footing. However, the share issue will be heavily dilutive and leaves the existing shareholders owning well under half of the company moving forward. Those buying in at 10p appear to have a very good deal and at the current share price we believe the shares are a SPECULATIVE BUY.