Ann: Notice of General Meeting/Proxy Form, page-9

Two things are clear
The price of the shares to be issued is too low to be fair
The company is concerned that it may find itself without the 300 shareholders required to satisfy ASX listing rules.
IMO shareholders should move an amendment to reduce the number of shares to be issued by increasing the issued price to achieve fairness.
If that fails then consider voting no because voting yes means we get the crumbs while the directors and new major holder laugh all the way to the bank.
Dave R.