placement of 100m shares at 1.07c, page-14

Hello fluffy,

I wish it was only a rights issue fluffy lol!

This is a placement followed by a rights issue. Please read the announcement.

Guys please read the following announcements

1. Notice of Annual General Meeting issued on 30 September 2009 - http://www.hotcopper.com.au/asx_announcements.asp?id=95161. Read Resolution 5 for the placement of 100 million shares:

The Company proposes to issue up to 100,000,000 Shares by way of a share placement on the terms set out below. The issue of Shares will be equal to approximately 12.58% of the Companys fully diluted share capital assuming no further issues of securities by the Company.

Listing Rule 7.1 provides generally that a company may not issue shares or options to subscribe for shares equal to more than 15% of the companys issued share capital in any 12 months without obtaining shareholder approval. Resolution 4 seeks this approval.

The maximum number of Shares that will be issued under the placement is 100,000,000. The Shares will be allotted and issued as soon as possible but, in any case, not later than 3 months after the date of Shareholder approval.

The Shares will be issued at a price equal to at least 80% of the average market price of Shares, calculated over the last 5 days on which sales of Shares were recorded before the date upon which the issue is made.

Listing Rule 7.1 prohibits a company from issuing 15% or more of its existing issued capital without seeking shareholder approval in any one financial year. Approval for resolution 5 during the AGM was sought to get this approval in advance.

By my calculations, subject to the VWAPs being close to the closing share prices for the respective days, the placement price is too low. Also the company is issuing free options for which no shareholder approval has so far been provided. Not sure if the options issue is legal or not without shareholder approval but the placement price looks suss to me.

I have tried to call JP to get a clarification and correction ideally. Would urge other shareholders to do the same if they are concerned (call on +61 8 9242 2999). Office should still be open in Perth.