Ann: Increased Sales Lead to Record Monthly Product Shipments, page-70

It has been suggested that one motive of this announcement may have been an attempt to intentionally raise the AJX share price in order to satisfy performance rights requirements for executive directors. It would be concerning if this were true.

The 2016 Annual Report does show that NC has an entitlement to 1.25 M performance rights vesting and expiring 30 June 2017. GR holds an entitlement to 2.00 M similar rights.

Entitlement to those rights was approved by shareholders at the 9 November 2015 AGM, when eight milestones defined as Terms of Conversion were set out. Vesting requires three of these eight milestones to be achieved within the relevant period (Oct15 to Jun17), with one being compulsory.

The primary milestone specified as necessary for vesting of the rights is that of Share Price Appreciation, defined as:

The price of Shares as traded on ASX must equal or exceed $1.2520, over a 5 day volume weighted average closing price during the Period, being the price which is a 40% premium to the 20 day volume weighted average closing price per Share, calculated as at 17 September 2015, being the date immediately prior to this Notice.

While many of the Company’s previous announcements have contained a definite element of enthusiasm, it seems to me that attempting to satisfy this Term at this late stage through a supportive announcement would be well beyond its normal levels of optimism.

Considering its timing it is possible that its motive relates more to a target audience in the US rather than local.