Ann: Trading Halt, page-18

Shareholders of Envirosuite, a microcap which has seen its stock price more than double since last month, are being offered shares at almost four times the price of an unusual share issue to the personal trust of a Chinese national just four weeks ago.
The $125 million ASX-listed company, which supplies software systems that track environmental pollutants in real-time, on Thursday requested its shares be placed in a trading halt in relation to a "proposed capital raise" but did not give further details.
Mr Zhang is a general manager at Beijing BHZQ Environmental Engineering Technologies Co, a Hong Kong listed company and a director of Phoslock.
"The board expects that this transaction will deliver an accelerated entry toward the achievement of critical mass in the China market laying the foundation to support a sustained growth rate for the longer term," said the company in an ASX release headlined "Transformational agreement to launch Envirosuite in China".
"The board also believes that with the access provided by Mr Zhang and his team, the China market will serve as an innovative launching pad to deploy and demonstrate the commercial and technical appeal of Envirosuite’s expanded industry solutions."
Before the announcement, shares closed at 13¢. On Wednesday, they closed at 33¢ a share.
As part of the agreement, Envirosuite has also issued 25 million unlisted performance options vesting at 15¢ a share if the company's Chinese subsidiary generates a cumulative $10 million revenue by December 2021.
There is also an additional 15 million unlisted options that will be vested on the same terms, "to be allocated to employees of the China subsidiaries subject to it being lawful to do so".
Shareholders are being asked to approve the issue on October 16 at Envirosuite's annual meeting.
The board, which is chaired by David Johnstone, will also offer Mr Zhang a board seat if the hurdles are met.

AFR