re: 3 the cash issue 3 Post 2From VCR: "The Company has...

re: 3 the cash issue 3 Post 2

From VCR: "The Company has incorporated a top up facility whereby Shareholders may apply for additional shares, in excess of their entitlement, at the same price.

"Additionally, the Company may seek to place any subsequent shortfall in the Rights Issue with institutional and sophisticated investor clients of ABN AMRO Morgans Limited, who is broker to the issue".

Comment: So there is an opportunity to increase one's shareholding over and above normal entitlement at the price of $2.25. THere are about 177 mill shares now and if al the 15 mill. rights are taken up, then the number of shares after the issue wil be 191.5 mill.

Theoretical calculation Ex Issue Price of shares and price of Rights. Assume that the price at closing today is $2.70.

The EX ISSUE Price of shares is: [(177 * $2.7) + (177/12 * $2.25)] / 191.5

Answer: $ 2.66. The theoretical price of the rights will be $2.66 - $2.25= 41 cents.

We need to await the market's decision as to what it is prepared to pay. Trading of rights wil take some time and any Medicare decision could fall in that period.

Gerry