Ann: ASX Announcement - SIV Notes , page-4

Eer,

That clause is standard and is in all convertible note subscription deeds. It protects QVT from TZ doing anything naughty - like issuing lots of shares cheaply elsewhere. I'm sure QVT's lawyers would have insisted on it.

MM and co have been insisting that a low price capital raising is coming imminently - 30c.

Now that QVT has taken notes at 42c, how would it look if TZ issues shares imminently at below 42c thereby allowing these notes to be repriced down? - and all BEFORE these huge deals that they say that they are doing?

The answer is - not very good at all. Cannot be justified.

How would it look if TZ issues share at below 42c AFTER such deals?

The answer is - not very good at all. Cannot be justified.

A true cynic might say that QVT did not want the share price to rise until (a) they were sure that a major deal was on the cards, and (b) they received 42c convertible notes. Such a cynic would now think that the path is now clear for TZ.