Ann: ADO Proposed Funding Package, page-106

Hi pat-ey

My understanding may need to be corrected, but it is this. The Toronto-based institution will lend the 10m euros for the acquisition. To complete the acquisition, another A$12m approx is needed, to come from the entitlement issue. If neither is provided, the acquisition does not go through. The insto is simply saying "we can't proceed unless you provide the A$12m". A bit like a bank saying, "we'll lend you $x, provided you come up with the balance of $y".

So Anteo needs to get the $12m in the door, and have it there ready for settlement. Only then could the insto say "OK, we can now make a final commitment". If you are to seek your entitlement after that fact, you're too late. The offer closes 16 December. Settlement is anticipated end-December.

So what happens if we lodge our money with our entitlement acceptances (for however many we choose), and we come up well short of the $12m, and the acquisition does not proceed? We would have our money refunded, as the original purpose of our subscription cannot be fulfilled.

Incidentally, I'd be fairly confident that the insto has performed sufficient examination to be satisfied about Anteo and its business. They're not fools, and are not going to make such an offer unless they're confident they're on a good thing. They too have vigilant shareholders. There may be a bit more due diligence in poring over the books, but I have no doubt that both Anteo's and DIAsource's books are in good order.

Hope that helps, and I stand to be corrected.