Ann: Lanstead Funding, page-14

Just got back from holidays and saw the Lanstead announcement.

Not sure what to make of it but it does add further risk to the stock

From SMA's position they now have no safety net and if the merger was to fall through they would be trading as insolvent and would be obliged to appoint a administrator

From lanstead's postion they no longer want any more stock at the VWA for the last 5 days so either they have no faith in the merged business or they have cut a deal to use the cancelled funding to subscribe for shares in the capital raising.

I have no idea what will happen here but it seems their are only 3 options left
1. The $5m is raised and the merger goes ahead.
2. The merger fails and the Administrator is appointed.
3. The merger fails but they manage some funding at say .001. to keep going


Cant see how the share price will not fall over the coming month. May be at the lower price they can get the capital raising done.

Unless they get the merger done soon they are finished. At the end of feb the first half accounts will be released and then we will see the true state of affairs which will be far worse than most expect.

The only positive for me is that I dont hold any shares as if I did i would not know whether to sell and take my losses or hold and hope the merger happens.

For all those who hold I truly hope this merger goes through.