forthcoming spp., page-7

t lunch time Friday I received a phone call from a Mr. Peter Herd a Director if SBN telling me he had received a message that I wished to discuss the S.P.P...
The following is my interpretation of the conversation that followed, as I am using memory only I will obviously not be able to quote word for word but I believe I have the essence of the conversation for your information
Prupac (ME) Peter Herd (HE).
Me: I have read all the documentation relative to the S.P.P. and there appears little information relative to how the money will be used. I mentioned this in my discussion with Computershare and they referred me two announcements on the 1st March advising about investments in ARGUS and S.A.Y.
I and other shareholders, as indicated on Hot Copper would like more details on the anticipated use of the money. In my instance ,and I daresay for many others too, have already lost money and a broker friend once told me never send good money after bad

HE: I follow the same rule. Unfortunately I cannot elaborate further other than to say by raising this capital we will be in a much stronger position to take advantage of any opportunities that we come across. One thing I can say is that we will not be putting any more money into S.A.Y... We saw this as a temporary opportunity to use our capital and we anticipate getting our money back in the near future.

ME: So it sounds like we will be an investment company.

HE: No not specifically, we will of course seek investment opportunities but we will be looking for companies to develop perhaps with I.P.

M.E.: Do our Directors have expertise or experience in any particular area that could influence your search for such companies.

H.E. No. My experience is in Marketing, Business Management and Administration Terry Cutherbertson is Finance which was his involvement before he left KPMG.

M.E.: So our involvement in any such company that you find would be the Business Management and Finance side

H.E.: Yes.

M.E.: Can you make any statement at all to shareholders that could assist them in their deliberations as to their participation in the S.P.P.

H.E.: Not Really apart from what we have discussed .All I can say is that we will be constantly looking for opportunities and obviously the additional capital raised will broaden the scope of our search.

M.E.: Thank you Peter. Would you have any objection to me passing on these details to the other shareholders?

H.E.: Not at al by all means do so.

I hope this helps you in some way .I found Peter very easy to talk to, there was no hesitancy in his responses and at no time did he seem guarded in what he was saying.
An interesting point where he agreed with my rule of good money after bad. After thinking about it there could be three interpretations of his agreement.
1. I agree dont send good money after bad.
2. I agree but I dont think it applies in this case
3. I agree a good philosophy
I think it was intended as No.3

Following on this theme many of you will obviously find your self in a similar situation.
I could say that the money lost was invested in a company manufacturing drug testing equipment , and that is history ,this capital raising whilst going to a company of the same name would appear to be going to a company with completely different mode of operation ,therefore my philosophy does not apply????
Any comment would be appreciated as I think I am completely confused. Good luck to all