Ann: Appendix 4C - quarterly, page-101

I have gone the opposite and voted in favour of the issue of the shares and options. My reasoning is as follows -

1. The issue of shares is in lieu of payment of Directors fees. If we don't give them the shares we will have to part with approx. $227.8k in cash.
2. The issue of options is subject to achieving certain milestones. The exercise price of the options is 167% of the issue price which is the 5 day VWAP prior to issue. If we use Friday's closing price of 6.3cents as an issue price then the exercise price is approx. 10.5 cents. This is surely an incentive to the Directors and Management to add value for all shareholders. If they don't then their options are worthless.

Have I got it wrong?