Ann: Appendix 3B-ADO.AX, page-7

This Is the announcement piece has me stumped ? designed to minimize dilution and potentially at a premium to the current share price ? can't see how many shares the got for $500US? looks like they have $1.5 million to go?

2. Minimizing dilution. Bergen will purchase convertible notes in the Company. The conversion price of the convertible notes will be the lesser of 92% of the average of five daily volume-weighted average pr ices ( "VWAPs") of the Comp a n y’ s shares dur ing a speci f ied per iod immediately prior to the date of the issuance of the ordinary shares or 140% of the average of daily VWAPs for 20 trading days prior to the date of execution of the Agreement.
This allows the Company to potentially issue new shares at prices that are linked to the prices prevailing at the time of the conversion (i.e. potentially at a premium to the current share price) and minimise the dilution for its shareholders.
3. Additional safeguards for the Company. The Company has a number of additional safeguards, with a particular focus on safeguards against dilution. These include the following:
A. The Company can opt not to issue further tranches, and terminate the Agreement without penalty. This ensures that the Company can avoid dilution at below a level that is acceptable to it.
B. With US$1,500,000 advanced on execution, an additional US$500,000 firmly committed, and additional US$4,500,000 available by mutual consent, the Company has avoided dilution at today’s historically low levels, while retaining substantial flexibility.