Ann: Share Purchase Plan , page-7

Re the SPP..........

After the issue (due to the heavy discount of the new shares) the net asset backing per share will drop from $1.40 to about $1.28 - 12 cents per share drop.

If you purchase the maximum 17,250 shares at 87 cents there will be an offset of (1.28 - 0.87) 41 cents per share for the new shares, or about $7,000.

So if you have over 60,000 shares you are losing out as the net asset backing reduction on your existing holding is greater than the benefit gained from acquiring the new shares

Why didn't CTN have a non-renouncable rights issue of, say, 1 for 3 if they really need more cash? This would have been fair for all the stock holders.

CTN needs to explain what is behind combining a Buyback of 11M shares with the issue of 30M new shares in this SPP.