Ann: Cleansing Prospectus, page-10

So, can anybody assist in explaining this...? Why would this prospectus be needed just to satisfy debts?

Here's what I can see;
1. This prospectus cost the company $8,206 (ex. GST) (Ref 3.4 pg 10)
2. 3.1 differs to 1.2, I don't think John owes Bin anything... it looks like a typo to me?Resolution 2(c) from meeting clearly states 8.25m to both Bin and John separately, so this almost confirms it's a typo unless i'm missing something
3. 'The primary purpose of the prospectus is to facilitate secondary trading of ANY SHARES ISSUED between now and 21 Dec - This includes issues of shares (e.g. CR) to sophs etc.'

So we are just seeing a cleansing notice guised under this prospectus to remove secondary trading restrictions on capital issued prior to 21 Dec...? And it cost us $8,206 and just means shares issued can be dumped on market (as far as I understand the implications of secondary trading restrictions in this instance).

This whole 10k shares @5c ($500) nonense is probably just to satisfy criteria of what needs to be included in a prospectus?


So in summary;
1. $8.2k to lodge a prospectus because we weren't allowed to issue a cleansing prospectus
2. Removal of secondary trading restrictions on issued capital, including capital issued in any CR prior to 21 Dec
3. Someone will be offered $500 worth of shares at a 100%+ premium to current PS and probably would refuse to accept the offer making the prospectus just a cover to achieve point 2 above in lieu of cleansing notice.


This is all IMO - First I have seen one of these, so just trying to piece it together... Very interested to hear others views. The only negative I can see if any is that future CR won't be subject to secondary trading restrictions, but i'm not sure it would have been anyway?? So probably a moot point. The hope here is obviously that those about to be issued capital aren't just going through these paces to dump on market into the upcoming excitement of a signed deal?

Who knows - not me!