Ann: Four Mile Project - Litigation Settlement, page-248

Sisyphus

Why do you think the price will be determined from the VWAP over the period August to September?

I understand it will be from a two month period, however I thought that they had up to six months to decide whether they would take up the 15% (which ultimately could be as much as 40%) and that ITOCHU had to provide 40 days notice to AGS on decision to take up initial 15%.

My theory (conspiracy or not) on this is that maybe an agreement to sell may be very close to being finalised with someone (Q?H ?) with the timing or other aspect of final sale not yet completed, hence no announcement to be made.

My guess is that AGS dont want ITOCHU to take up option to "buy" in if sale is to be effected before the six month deadline (effectively AGS would lose up to 40% of sale proceeds to ITOCHU if it sells). Therefore not in AGS interest to talk up sale or the value of what is for sale, make it as unpalatable as possible for ITOCHU to take up 40%, especially at these prices. After six months no problem option to take up expires and all sale proceeds go to AGS.

However, if ITOCHU do decide to take up 40% then AGS would immediately finalise sale, make big announcement with aim to increase share price as much as possible in the 40 days notice period that ITOCHU must provide. That way the VWAP over the 60 day period should at least be able to take into consideration the increase of share price during the 40 day notice period.

Anyway that is my conspiracy theory on what is happening at moment.