Ann: Investor Presentation, page-65

There are conditions attached to FS taking up their rights. Basically, TTI must payout First Samuel and ADM in full as a condition.

So that is $10.5 million. I think it is highly unlikely they will have the cash to achieve that even if the rights issue is fully subscribed. But it does indicate that First Samuel appears to be willing to do what ever it takes to discharge their $3.5 million loan to TTI. hardly a ringing endorsement of the MD or the Company in my opinion.

From the offer documents:

5.3 Shortfall Commitment arrangements

The Company has entered a conditional binding firm commitment letter with First Samuel, the terms of which include:
(a) First Samuel is to subscribe for up to 33.33 million Shares for a subscription amount of up to $1,000,000 at the issue price of $0.03 per Share in respect of the Shortfall.

(b) The commitment is conditional upon:
(i) There being sufficient Shortfall available on completion of the Offer;
(ii) The Company repaying an amount of AU$3.5 million to discharge its current loan with First Samuel; and
(iii) The Company’s debt facility with ADM Capital being repaid in full.

(c) First Samuel has provided representations and warranties customary for such a placement.