fairness to shareholders, page-26

And here's another thing I don't like.

In the proxy form, instead of having separate votes for the transaction and the issue of free shares, they've bundled everything together into just one matter to be voted on.

So that means shareholders cannot vote on both issues separately, but must either approve the whole package including the free shares or scupper the entire deal if they disagree with the issue of free shares.

In rereading the independent expert's report I realised that the free shares issue is far greater than I first thought. Below is a simplified table based on the one on page 7 showing the complete breakdown of free shares:

Andrew Andrejewskis 3,000,000
David Tucker 3,000,000
Kevin Wills 3,000,000
David Godfrey 750,000
Ewan Vickery 3,000,000
Robert Kennedy 3,000,000

Other Shareholders 5,850,000 (who are they???)

Total as at the prospectus date 21,600,000 (all free shares)

Prospectus 25,000,000 (the ones being offered at 20 cents)
Flinders 15,000,000 (charged at 10 cents)
Total shares on issue 61,600,000

The comments in brackets are mine.