Ann: NTL successfully raises $4.69M-NTL.NZ, page-31

What is your view on the rights shortfall?

My view is that the company has enough to get bulk sampling underway and they should refrain from issuing new shares at 0.5 cents each, unless:

(1) The shares go to shareholders who were entitled to the rights at the time of the rights issue;
(2) The shares go to a non-controlling individual/organisation who was not an existing holder but an organisation who could offer support on the way to production.

Now, (2) could be Amer for all I care however I am not interested in handing off majority holdings to strangers. Like you say, we've been supporting this company for years in many cases.

After all, it is NZX Listing Rule 7.3.4(d) which allows the company to place shortfall. It seems to me there is a certain subjectivity about the belief of the directors when it comes to whether it is equitable and in the interests of the company to issue the shortfall to anyone:



Clearly a director will have a balancing act in determining the right thing to do. These considerations will also have to be weighed up against fiduciary and other species of duties to shareholders as part of their decision making.

I am hopeful that whatever the company decides to do that it is in the best interests of shareholders but in particular us long standing ones who have been here a long time.

At any rate, without a single holder with a majority, the minority shareholders can certainly rock the boat if need be.