Struggler:If you are on the EDE register on the 5th May ....and...

Struggler:

If you are on the EDE register on the 5th May
....and you hold (e.g.) 1,000,000 shares
....and you take your entitlement fully
....you will then pay to Eden $11,000
....Eden will issue you with....
....100,000 shares which rank equally with other shares on issue
....and 100,000 free options, which will be convertible any time until 30 June 2014 at which time they will be cancelled in not converted.

The price for converting the options to heads is 20 cents per option which is payable to EDE, total cost $20,000. If you convert your options before the heads become consistently valued at <20 cents themselves, you are from another planet.

If however the heads go to 25 cents and you convert, you will make 5 cents profit if you convert (for 20 cents) and sell (for 25 cents) You will have made that 5 cents profit for virtually no outlay.

If however you convert the options (for 20 cents) when the heads are on the market for 15 cents you wll have to wait until the heads are 20 cents to break even, at which time you will be able to sell the converted options (now heads) for 20 cents which is what you paid for them. Less selling brokerage, of course.

If you don't convert the options by the 30 June 2014 and the heads are valued at $1 you are from another planet because you will have forfeited $80,000 (deduct the 20 cents cost to convert.)

The options may trade prior to the heads reaching 20 cents but really they have no "sensible" value (IMO) until that time.

If you take the entitlement - fully or partial - those "new" shares will appear on your account a few days after the closure date (see prospectus)and will be available for transaction immediately they appear on your account. This is done by the share registery through the CHESS system using your HIN number.

If you do not take the entitlement your EDE position will be diluted by 10%.

This is not advice, just my opinion. Some or all of the above might be NQR so if anyone notices a NQR please correct me.