Ann: Change in substantial holding, page-3

in regards the announcement just out - AJM's Terry Smith with his combined 28,431,990 shares obtained under the rights issue at 6 cents together with his 100 million issued at 5 cents brings his new total to 313,239,925 or 12.04% . This together with what someone had mentioned in regards Buckler's 14 odd % is getting dangerously close to what the ASX would consider as yielding significant ' related party ' decision making powers relating to ' control ' . One has to wonder how long this ' Bailout ' or moreover support strategy can continue before they would discuss with lenders in regards this combined ' significant ' stake .

On a separate issue and in regards the much talked about Interest and terms , the interest rate in Australian Dollars is actually equivalent to 23 % if you use 65 cents as the $aud exchange rate to the $usd. So if the interest is say continuously capitalized on the Loan Balance , the company mentioned of $244 million aud , then potentially over the course of the remaining 3.5 years ( not 3 years ) , the loan balance would ' balloon ' out to close to a whopping $500 million outstanding loan. That's half a billion dollars.

So this is a further reasonI believe that Buckler and Co. have a wider plan to securitize their respective holdings at some point prior to the ' control ' issue becoming potentially ' critical ' in the eyes of the ASX and any future ' rights issue ' or deals . And when you consider that even at the present SP of only 4.5 cents , the 30 % value of they're combined holdings is over $30 million.

So if they can ' ratchet ' up or leverage the SP through ' Acquisition ' rather than through organic growth which many on these forums are proposing , this approximate $33 million could soon be re-rated to a much larger $133 - $150 million. And under this sort of scenario , the current debt with it's onerous and almost insurmountable terms just goes away .....