Ann: Funding Update, page-6

Intentions are now clear. I received a note from him today and assume other shareholders will too.

Ian must be a hell of a golfer because he certainly plays a great long game.

Ian's letter points out that The company (which is him really) in August had the registry (Computershare) send an offer to the 637 shareholders with less than 55551 shares (ie less than a marketable parcel of $500) offering to buy their shares at 0.09. The offer ends 23/9/19.

As a consequence of this offer for the "unmarketable parcels" Ian thinks the number of shareholders (other than him) will drop to below the 300 "minimum generally required by the ASX" to maintain listing. Accordingly Ian will stand in the market from 10/9/19 to 9/10/19 for remaining shareholders to receive 0.009/share if they wish to sell.

Whilst the letter doesn't specifically say that AAU will be delisted, that is certainly the inference. It probably doesn't say it because it is to be delisted because that would involve advising the ASX, calling an AGM and also setting out why delisting would be fair and reasonable to all shareholders. Usually this is simply put down to the cost of compliance. Also there is no minimum number of shareholders per se but given AAU trades only about once every 2 weeks, I can see the pojnt.

It wasn't that long ago that Ian had said his intention was to keep the company listed so I am disappointed that I may not get to participate in the re-emergence of AAU as I have from my investment in Photon/Enero (EGG) which after many years has staged a magnificent turnaround. Perhaps the AAU management and services are just not up to trading out of their losses?

Something may have changed Ian's mind but surely it's not the recent Cash Flow Positive 4C.

Anyway, a lot to think about after Ian's letter but in case others are not aware, just because a company is delisted it does not mean that you have to accept an on market offer.

You can choose to retain your holding. You will then hold a share in a company that is not traded on the ASX but you will retain some rights under Australian company law.

Not so long ago I went through a delisting with a company called ITL Health Group. They delisted following an on market company buy back but there is plenty of precedent for shareholders being left to take what they can get in a very illiquid market (not too many buyers for shares in a private non traded company). I've never seen a Chairman and major shareholder stand in the market like this but a company structure like AAU doesn't come along very often.

Again, while I am very disappointed that Ian seems to have opted not to continue the long game with AAU as a listed company, I also recognise that if it wasn't for his long pockets it would have shut up shop long ago. This was on the cards sooner or later when he went past 80%.

I'll consider my options.

GLTA