Ann: Grant of ASX Waiver, page-8

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the bodge

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23/06/18

09:59

Post #: 33899751
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Originally posted by Meteor ↑

BJ is correct in that Resolution 19 of the Notice of General Meeting requires the 100m shares to be issued no later than 6 months after the date of the meeting and they simply sought a waiver from this.

Now let us first consider Resolution 18 - this was for the issue of up to 20m shares at 50c to raise 10m to meet interim funding requirements prior to conducting public offer (Resolution 19). As we know the issue subject to Resolution 18 was oversubscribed and they raised $12m instead of $10m.

Now under Resolution 19 the public offer was for up to 100m shares. The reason given was to raise additional capital to satisfy various ASX Reinstatement Conditions (set out in para 1.7 which also refers to Schedule 2 for more details).

Resolution 19 was passed and their application of 8 June 2018 to the ASX was to waive the requirement to issue the shares no later than 6 months after the date of the meeting. This was granted on 22 June 2018.

So the question is why? I have two theories:

The first is that the Public Offer under the Resolution requires a full form Prospectus for the purposes of Sec 710 of the Corporations Act. If they go ahead with this, will it further delay listing?

The second is more interesting. After the Recapitalisation proposals (refer para 1.7) and payment of relevant costs etc and satisfaction of obligations under the DOCA, the Company needs to demonstrate to the ASX that it will have a minimum of $1m cash at the date of the reinstatement. IMO, the Company (given it is a producer selling in a buoyant market) will be able to demonstrate this very easily ie it would be laughable in the extreme to suggest that the company will only have 1m in cash!!

My conclusion is that it is the second reason. It is therefore entirely possible that the Company may never have a Public Offer (but it will be there just in case). In any event if the sp increases sharply you may issue less shares or raise more funds?

All IMOO and pls DYOR!!

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Hey Ralph, can you explain this last Ann in laymans terms please, as i am not a Lawyer.

CSD Price at posting: 25.0¢ Sentiment: Hold Disclosure: Held
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Ann: Grant of ASX Waiver, page-8

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