Ann: Prospectus Non Renounceable Rights Issue , page-2

OK I had a look at the prospectus and this point (4.1 para 2) sort of answered my main question (do you get $ back if they don't raise the minimum amount?):


Minimum Amount not raised
The Offer is subject to a minimum subscription amount of $60 million. If the Minimum Amount is
not raised, the Offer will be unsuccessful and the Company will be unable to satisfy the terms of
the NAB Agreement or the conditions of the Vendor Agreements. The continuing support of the
Company?s financier, NAB, is subject to the Minimum Amount being raised. While Shareholders
will be refunded their Application Monies in full (without interest) in circumstances where the
Minimum Amount is not raised, the Company may be in breach of the NAB Agreement and the
Vendor Agreements and may not have sufficient working capital to support its continued
operations. Were that to occur, the Vendors may take action against the Company for breach of
contract, the Company?s lenders may enforce their security over the Company or its assets and
the Company may become an externally-administered body corporate. In such circumstances,
existing Shareholders would be at risk of the loss of some or all of the value of their current
investment in the Company.


So if the minumum amount isn't reached, you get your money back. But EXISTING shares (the ones we have now suspended in our trading account) could be worthless if it goes arse-up (obviously).

That's the way I read it. I have not decided whether to participate. Of course they could raise the amount needed and then go bankrupt anyway, in which case you lose the lot.

Any thoughts?

cheers

PS that letter to option holders did seem a bit rich.