Ann: Letter to Shareholders & Notice of Annual General Meeting, page-190

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hashtagyolo

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29/10/21

17:51

Post #: 57190072
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Originally posted by mooselington: ↑

To give someone 25% is above the 20% trigger and is effectively treated as a corporate transaction as the person would gain a controlling interest in the company. this would require shareholder approval.

A person cannot acquire a ‘relevant interest’ in voting securities of an entity that is subject to the takeovers rules if that would result in any person’s ‘voting power’ exceeding 20%, except via a specified exception (such as a takeover bid or scheme of arrangement).

remember the board wants a big transaction, two of them are incentivised to possibly tens of millions of dollars if the price is right... They don't want to mess this up by giving away a controlling interest and then being screwed on the deal table by the shareholder vote effectively being controlled by a single large shareholder.

If they were to use the mechanism, they would likely do a Share purchase plan where they offer shares to existing shareholders proportional to their holdings and often with a cap.
e.g. "eligible shareholder can purchase one for every 5000 shares owned up to $50,000."

so it limits an individual shareholders' ability to accumulate a controlling stake

i agree with the remuneration comments - these guys will all make a packet out of a big transaction and if it's imminent they really dont need any more money. Remember that 55% of the sale incentive pool goes to two people, the rest to us based employees (which is 7.5% of the sale value above 550m). It adds up quickly

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Looks like we are all voting against resolution 4. - if someone wants a 25% controlling stake, they can bloody well try to do that on market. We'll be at $4 before you can say tickety boo

5 is fine. House keeping really.
3 is fine. We want and need Dave to push this over the line.
2 is fine. We want the good Dr. to push this over the line - we want him incentivised well enough too - Goodness know he will be handsomely rewarded for his efforts with the deal he's on.

A vote against resolution 1 is a protest and a clear message to the board - we have been loyal for years but are treated like mushrooms. Shit or get off the pot. Let's go to the moon or piss off and lets sink this ship.

4DS Price at posting: 13.0¢ Sentiment: None Disclosure: Held
32 Upvote

2 Great analysis

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