Ann: Unclaimed Shareholder Distributions, page-2

Again, another partially immaterial and imprecisely drafted announcement, which makes it confusing.

It’s a simple rule and this issue is NOT “Unfortunately” due to ASX.

Under the ASX Listing Rules, any shareholding valued at less than A$500 is considered to be an unmarketable parcel (Unmarketable Parcel). The Prescribed valuation method outlined by ASX is Based on the 10-day Volume Average Weighted Price (VWAP) at the close of (last day of) trading prior to announcement/execution of Board Decision on buyback (Record Date) of A$X.XX….to be determined by the company) which is likely to be less than cash backing of $0.085 on which ever exchange they can get listed on, so don’t forget to consider FX risk if they go ahead on the AIM or LSE. So anyone holding 5,882 Shares or less (assuming the DNK trades at $0.085) constitutes an Unmarketable Parcel= $500. The Buy-Back will enable Eligible Shareholders to sell their shares back to the Company in accordance with the Company’s Constitution and the ASX Listing Rules. These Shares will be cancelled once transferred to the Company in accordance with section 257H of the Corporations Act 2001 (Cth) (Corporations Act). When they get relisted somewhere, sometime, in far far away time, DNK should attach a letter and Notice of Retention Form (Retention Form) that will be sent to all shareholders who hold an Unmarketable Parcel on the Record Date (Eligible Shareholder). Eligible Shareholders who wish to retain their shares must complete and return a share retention form to the Company by a certain time (AEST) on specific nominated date.

IF we assume they buy back the 5,000 unmarketable parcels for $0.085x 5000 =$425. Then 1227 shareholders will be affected. DNK will pay 1227 x $425 for unmarketable parcels=$521,475.

Given the unclaimed or unpresented amounts were announced together with the buyback do we assume those holding the unmarketable parcels represent the unclaimed amounts?

If so, DNK spends $521,475 to buy back $1,681,205 worth of unclaimed distributions, which should mean we all get more distributions or a better cash backing at least.

Why they chose to blame ASX again, (Unfortunately ASX…blab la) is an indication these guys seem not to know their listing rules and guidelines very well.