Valid point nicca. I have no expertise in company law so I...

Valid point nicca. I have no expertise in company law so I cannot explain how SMA could issue what I calculate to be 26% of shares on issue without prior shareholder approval.

I note the following:

From 1 August 2012, a new Listing Rule 7.1A will be introduced into the Listing Rules. Listing Rule 7.1A will permit listed entities that:

•meet the threshold eligibility criteria; and
•have obtained the approval of their ordinary shareholders by special (75%) resolution at the AGM, to issue an additional 10% of issued capital over a 12 month period.

There is a maximum discount of 25% to market price at which the additional 10% can be issued.

It would appear that the Company owes us and the ASX an explanation but in the absence of any official queries maybe they don't. I'd certainly like to see an answer to nicca's query.

Whilst I am pleased that SMA now has liquidity, I am concerned that a new (unproved) partner has suddenly arrived who owns over 20% of the Company. It wouldn't take much at current prices to raise that ownership to at least 25% then what? This partnership like all the previous capital raisings was agreed behind closed doors without any prior consultation with shareholders (not us little ones anyway). The scale of this agreement, whilst it could be the saving of the Company (or the beginnings of a takeover) makes me uncomfortable about where the Company is headed. I just hope it works.