Hi Towie, I believe that is incorrect, please refer to PNO options expiry 31/12/06, expired out of the money and not exercised, the day after expiry, a priority offer to expired option holders as of 31/12/06, were offered a new issue at 1 for 1 at 1c per share, please refer to PNO annoucemnets for full details, so going on previous actions by ASX Listed Companies it is within ASX Guideline/laws etc, Cheers.
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