Ann: Appendix 4E and Annual Report, page-43

From page 3 of the Second Supplementary Scheme Booklet:
“The Board believes it will be able to raise the required funds on the equity capital market, albeit potentially at a significant discount to the prevailing share price, and in this regard notes that it has its full placement capacity under Listing Rule 7.1 available to facilitate a prompt placement of Shares to one or more third parties.”

Rule 7.1 allows for an immediate placement of an additional 15% of issued capital (129 million shares) without need for shareholder approval. In determining the price of the placement the Board would have guidance available from the IER’s valuation range of between $0.145 and $0.277. It would have difficulties justifying a chosen price lower than this range.

Assuming a discounted price in the lower half of the range ($0.145 - $0.207), this would lead to funds raised of somewhere between $18.7 million and $26.7 million. These would provide sufficient capital to cover 3-4 years current expenses even without any growth in revenue income over those years.

Purchase of the entire 15% placement by one party would entitle its representation on the Board.

As a current licensed partner Pfizer is an obvious candidate to be that one party. It already has declared that it wishes to purchase as much of ResApp as possible at a price of $0.208 per share. The Board has declared that it wishes Pfizer to be an owner. No doubt Pfizer’s opinion on this possible eventuality already had been sought.

IMO those making YES decisions based on their perception of the reality of the situation may be failing to recognise much of the reality of the situation.