convertable note issue, page-6

re: nlx...what a joke indeed yeah Bill's gone a bit quite
He's probably given up all hope of getting nlx back up to 10 times the current price
Come back BILL, we all miss those postings like a whole in the head
LOL!!!!!!

Monday August 7, 04:03 PM
Nylex issues another profit warning
Troubled building, automotive and plastics products maker Nylex Ltd has issued another profit warning, saying it expects annual underlying operating profit will be close to break-even and is considering another $12 million in writedowns and restructuring provisions.

Nylex had given previous guidance for an underlying net profit from continuing operations of $1.5 million to $2 million and writedowns and restructuring costs of $18 million.

"Latest indications are that the underlying operating result will be close to break-even and the company is considering further restructuring provisions, writedowns and AIFRS (accounting) adjustments of around $12 million," Nylex said.

In May, Nylex issued a profit warning that underlying earnings of continuing businesses for the year to June 30, 2006 was likely to fall short of company guidance due to increased materials costs linked to higher oil prices, lower production by car makers, machine reliability issues, and lower sales for consumer products.

Nylex said that it had implemented an extensive turnaround program since April 2006, removing more than $20 million of recurrent expenditure from its cost base.

"The benefits of this program will arise in 2007 and beyond," the company said.

Nylex executive chairman Peter George said Nylex "continues to trade in subdued market conditions".

Nylex announced details of a $40 million capital raising foreshadowed in June.

Proceeds from the capital raising will be used to reduce debt, create extra working capital and fund restructuring costs.

The capital raising will comprise a $20 million issue of convertible notes at 4.6 cents per note, and a $20 million rights issue of new ordinary shares at an exercise price of 4.3 cents per share.

The notes issue and share rights issue are contingent upon the finalisation of satisfactory debt facilities.

Nylex said talks were progressing with the company's bankers, ANZ and Westpac.

Nylex shares were 0.2 cents lower at 4.8 cents at 1529 AEST on Monday.