Ann: ANS: Proposed $100m Placement & Strategic Investment in Sund, page-34

Quite a fascinating (proposed) transaction. Obviously SDL has been left with little choice as it needed a "credible" investor to gain a further extension. ANS obviously don't have a strong enough balance sheet to be credible and the current note holders were not interested in sinking any more money into this and agreed to take a hair cut and convert to shares in the hope something works out. This deal will see them take the haircut but actually get cash and they can get themselves out of SDL so they are obviously agreeable.
WAPRC is a private Chinese Company who previously invested $3m into ANS to enable relisting earlier this year.
They now propose to place $100m to gain control of both Companies!!
The sticking point is obviously the ability of WAPRC to come up with $100m and ASIC are not prepared to let either Company trade until the bona fides of WAPRC are established. (memories of being singed by a hot hair straightener!!)
The second sticking point is, even if they come up with the $100m do they have the capacity to develop either or both of these projects. Plenty private investors have been burnt investing big dollars into projects that go nowhere. The issue of options which will raise a further $400m down the track means nothing at this stage.
Many ifs and buts in the anns, however you would think that there must a push to actually get the SDL project moving, so for holders sake hopefully there is more behind this latest development.
Interesting times ahead and hard to work out the value of this to small holders equity, certainly a dilution coming, but will be interesting to see if there is more meat behind this plan...............
Good luck.