Ann: Demerger Update and Notice of Meeting & Prospectus, page-93

I need to correct a previous comment I made in this thread as I'm having a look at the hard copy of the July AGM notice. I missed that very special use of the word 'and'.

If you parcel is under the 'marketable amount' at the time of issue and Cowan Directors give a divestment notice, as per schedule 6 section 8, you can not simply write in stating you wish to retain them (as per schedule 6 section 8 (b). This is because schedule 6 section 8 (a) would not be met.

I assume that the divestment action can't proceed until Cowan Lithium is floated. So I assume the divestment action can be stopped by any small holding being increased in size to a marketable parcel, which looks to be the $500 figure under ASX listing rules chapter 19.

My take on the maths has been mentioned by others. At a value of 20c you will need 2,500 to reach $500 in Cowan Lithium to have a marketable parcel. At 1:11.1 ratio that would be 27,500 in Tawana shares held to receive just enough Cowan Lithium to have a marketable parcel at the time you acquired your Cowan Lithium parcel.

Sorry for the previous misleading comments last week.

8 Small holdings
The Cowan Directors may give a divestment notice to a Cowan Shareholder whose holding of Cowan Shares is valued at less than a marketable parcel of shares under the ASX Listing Rules. The divestment notice notifies the Cowan Shareholder that Cowan Lithium intends to sell the Cowan Shares the subject of the divestment notice within 6 weeks of the date of the divestment notice.
Following the 6 week period, Cowan Lithium will be entitled to sell the Cowan Shares the subject of the divestment notice unless:
(a) the Cowan Shares were valued at more than a marketable parcel of shares at the time the Cowan Shareholder acquired them; and
(b) the Cowan Shareholder notified Cowan Lithium in writing that the Cowan Shareholder wishes to retain its Cowan Shares.

marketable parcel
the meaning in the procedures of the ASX Operating Rules.
Amended 11/03/04, 17/12/10
Note:
The meaning of “marketable parcel” in the ASX Operating Rules Procedures is,
in relation to:
1.
Equity
Securities (but not rights to subscribe for Equity Securities or options
over Equity Securities)
, a parcel of securities of not less than $500 based on:
(a)
the closing price on a Trading Platform, if the Equity Securities are
quoted; or
(b)
the price paid on issue if the Equity Securities are unquoted; and
2.
Rights to subscribe for Equity Securities, a parcel of rights which, if taken up
in full, would r
esult in a parcel of Equity
Securities which would not be less
than $500 based on:
(a)
the closing price on a Trading Platform of the Equity Securities at the
time of purchase of the rights, if the Equity Securities are quoted; or
(b)
the total application
moneys payable in relation to the exercise of the
rights, if the Equity Securities are unquoted;
3.
Options over unissued Equity Securities, a parcel of options which, if
exercised in full, would result in a parcel of Equity Securities which would not
be
less than $500 based on:
(a)
the closing price on a Trading Platform of the Equity Securities at the
time of purchase of the options, if the Equity Securities are quoted;
or
(b)
the total moneys payable on the exercise of the options, if the Equity
Securit
ies are unquoted;
4.
Loan Securities other than redeemable preference shares with a fixed and
certain date for redemption, 1 security with a face value of not less than
$100; and
5.
Warrants, a parcel of Warrants where the value of the Underlying
Instruments equals or exceeds $500.