Ann: Controlled Placement Facility, page-12

I've been saying for some time that CPA have an interest in keeping the SP low , 21.8c is now the floor price, the big question is for what purchase or possible acquisition has this money been raised ? this next little line indicates CPA have been doing a bit of shorting recently , placement of 20 million shares as collateral for what ?

Further, the Company has today issued 20 million shares under the Company’s existing Listing Rule 7.1 placement capacity as collateral for the CPA!!!!!!!!

The key features of the CPA include:  The Company is provided with discretion to raise up to $5 million over a 26-month period without any restriction or conditions on strategic partnerships, joint ventures, acquisitions of any assets or on the timing, nature or amount of any other equity or debt funding mechanisms.

 No obligation on the Company to utilise the CPA facility and no penalty or fees associated if the Company elects not to utilise or cancel the CPA facility.
 If the CPA is utilised, the Company retains full control over the CPA process including, the Company’s ability to determine: o Each valuation period (if any): being the date(s) over which the volume weighted average price (“VWAP” and final issue price are calculated;

o Maximum shares to be issued in placement amount to be issued for any placement period thereby minimizing dilution of existing shareholders; and o The minimum issue price for the placement period (“Floor Price”.

 Any CPA placement is issued at the greater of the Floor Price set by Company and a 10% discount to the VWAP over the placement period (subject to the minimum issue price determined by Company (i.e. the Floor Price)).
The final issue price per share may exceed the Floor Price and this can occur where the discounted VWAP of Company’s shares are above the Floor Price over the valuation period.

 Utilisation of the CPA facility is dependent upon Company’s available placement capacity under ASX Listing Rules. In consideration for providing the CPA, the Company will pay Acuity a non-disclosed, non-material cash fee. Further, the Company has today issued 20 million shares under the Company’s existing Listing Rule 7.1 placement capacity as collateral for the CPA. Importantly, there are no fees payable for the termination of the facility or where the Company does not utilise the CPA during the 26-month term. At the conclusion of the CPA term, the Company may elect to buy-back the collateral shares and cancel those shares for no consideration to Acuity.