will this reset the start of the 2 months, page-24

Gents

I deal with Chapters 1 & 2 very regularly, I have just advised on two back door listings where Chapters 1 & 2 of the listing rules were the main component.

I understand CDS is looking to change its activities i.e. become a mining company, therefore the day prior to that shareholders meeting the shares will be suspended. Once shareholder approval is received for the change of activities" the company must then reapply to the ASX for re-quotation of its shares.

There are a number of conditions i.e. liquidity etc that the Company must meet but two of the other conditions are the shares need to be at $0.20 (the cut-off day is the closing price of the shares the day its was suspended prior to the shareholders meeting), if the shares are below $0.20 the Company needs to consolidate its shares. For example if the shares close at $0.10 it will be required to do a 1:2 share consolidation. The Company also needs a minimum 400 shareholders with $2,000 in shares at the $0.20 level, post any consolidation.

There is no mention in Chapters 1 & 2 about a 2 month VWAP in respect to the $0.20 rule.

The above two conditions are at the discretion of the ASX but this discretion is rarely given. There are actually Listing Rule amendments currently being considered by ASX to abolish this $0.20 rule asnd reduce the level of shareholders from 400 to around 200 I think.

I hope this helps understand what the requirements are.