Ann: Letter to Shareholders - Upcoming EGM, page-67

You've come to an interesting place for reasoned responses!

I'll give it a crack ....

1. No, the C/N allows for the equivalent value (and so therefore number) at whatever the lowest share price (or option strike price) is during the contract period up to repayment. So the number of shares under the warrant increased by some 25% (according to their calculations - although I question this as they did not convert the 35c issue price into US dollars). The remainder of the C/N will do the same.

2. They can only claim shares under the conditions of the contract (conversion conditions), although AJX can choose repay the capital in shares or options if they all agree. This is my main concern.

3. Probably not applicable because of (2), but the shares once transferred are equivalent to cash, so the debt is extinguished. You can see how this can make your earnings look better. The interest has to be paid in cash, though.

I was interested in the amounts the directors contributed - GR, as always. put in heaps, the new director (Sue) put in heaps, and the rest put in a pittance between them. I would have thought that our new CEO would have shown a bit more faith in the company's future.....

I don't think any of our directors are dumb, (previous ones included), I just question the bunker they seem to have dug themselves into. The information coming out is scant at best - it's like a siege mentality reading the announcements. I look forward to Gavin moving on, and the new board members starting to have an influence - I hope it improves things.