Ann: Proposed issue of securities - AGE, page-52

Agree heatherbelle, though I think the bigger point is that these "Loyalty" options are worth peanuts compared to the options that have been handed out in the placement.

The placement was priced at an 8 or 9% discount to recent AGE prices. That's fair enough.

If they'd then attached one option to each four new shares issued, on the terms specified, I'd have thought 'that's quite generous, but ok, the company wants to raise cash, and the share price has had a great run - fair enough'.

But three options for every four new shares?

These options:

• are already only just out of the money (8.1c exercise vs 6.5c share price today)
• are priced almost 30% below where the share price was a few weeks ago
• have four years to expiry (that's the key bit).

Contrast that to the one for ten "Loyalty" freebies handed out to existing shareholders. Yes their exercise price is below the current share price, but they only have around three months until expiry. Three months versus four years. That's a massive difference in time value.

I think the placement was highly - and unnecessarily - generous to those that participated.

And the Loyalty options - by comparison, they are peanuts.

Another thing. It seems strange to call them 'Loyalty' options when anyone who purchases AGE shares in the next few weeks (before around 25 October) will also receive them.