Yes, I thought so, that they did not have approval for further...

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tusho

120 Posts.

15/07/16

06:52

Post #: 18274765
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Originally posted by Breezyfree ↑

@tusho, I still don't think that they answered your question...

"Can someone explain the following to me? I thought we were voting on the share issue. How come they were issued already. And then, will the "sophisticated investor" with his new shares be able to vote on passing that resolution?"

No, this share issue was not approved by shareholders. This is actually a big concern as the company has already exceeded it's share issue limit. The MD and board received an official warning from ASX on May 26th that they had exceeded their limit for issuing new shares without shareholder approval. They advised this was an oversight.

http://www.asx.com.au/asxpdf/20160524/pdf/437g6czjr4xtn0.pdf

Now they have issued a further an additional 65M yesterday are the rock bottom price of 0.5cents again without shareholder approval.

Greg Starr will now seek your approval, post issue, at the GM. Note this issue represents 6.5% of the company and share holder value. The next one they want to do will completely wipe out the existing shareholders. As to whether the sophisticated investor will be allowed to vote on passing approval for his own resolution with his pre issued shares, that would be something that ASIC would need to investigate. If you are concerned, I would definitely recommend giving ASIC a call. Here is their link for mis condut.

http://asic.gov.au/about-asic/contact-us/how-to-complain/report-misconduct-to-asic/

Going forward, resolutions, 7,8,9 & 10 will be the big hit for existing shareholders. based on their foretasted numbers, that would be an additional 2.5B shares. If the share price goes up it will be lower.

For disclosure, I have voted "NO" for all resolutions.

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Yes, I thought so, that they did not have approval for further dilution.

In either case, thanks for addressing my question JCM8 & Breezyfree...

KBL Price at posting: 0.8¢ Sentiment: None Disclosure: Held
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