Ann: Annual Report to shareholders-AJL.AX, page-26

We now have an explanation for the drop in share price .

Kerogen and OCP forcing a huge pro-rata rights issue and an offer which is effectively impossible to refuse of sub-underwriting the rights issue .

Gradually squeezing the life out of it as they tighten their stranglehold .
They've clearly managed to drop the SP 40% to ensure it is as dilutive as possible . Is a (pro-rata) rights issue subject to the ASX's 15%/25% limit or would shareholder approval be required to issue more equity than this ?

A.J. Lucas management no longer have the freedom to manage the company in the interests of all shareholders . The creditors must have a charge over the assets and thus Cuadrilla couldn't sell down their interest in Cuadrilla if they wanted .

Once they pay back Kerogen , they will benefit very little from the rights issue . Cuadrilla is not going to become self sustaining any time soon so what is to stop the company going through this again in 12 months time ?

Lucas are no longer in control of their own destiny .