Ann: Notice of General Meeting, page-59

from page 33, detailing the share allocations to Danny for $35m. the share valuation of this allocation, is calculated at the minimum share price of 24c or preconsolidation 1.2c. that would be about 145m shares or  about 42% of the company.

1. Date of proposed issue of securities
   The New Shares the subject of Resolution 3 will be issued will be issued as follows (assuming the New Shares are issued at the Floor Price and that the Equity Consideration has not been adjusted (refer to Section 1.2(c)):
   1. (i)  up to 41,666,667 New Shares on the date that is 12 months after Settlement;
   2. (ii)  up to 41,666,667 New Shares on the date that is 24 months after Settlement; and
   3. (iii)  up to 62,500,000 New Shares on the date that is 36 months after Settlement.

so this is the maximum share allocation he will receive and if OBJ's share price is still 24c (1.2c) after 3 years, I don't reckon many of us will still be holding b/c that means reduit, bodyguard, the revised P&G deal and NS  have all been unsuccessful.

just for an exercise, I will assume that the s/p is

60c (=3c) after a year. that would be 17m shares
90c (=4.5c) after 2 years.   that would be 11m shares
$1.20 (=6c) after 3 years. that would be 12.5m shares

totalling 40.5m shares, that would be about a 1/4 of the proposed share allocation to Danny.

so with a very modest sp appreciation over 3 years the dilution of this deal and the control that Danny has over Wellyfully would be greatly diminished.

plus with this $20m loan from ANZ, the initial cr of $50m, has been reduced to $35m maximum reducing dilution again, though we will have to repay the loan.


so, worst case is original shareholders will only hold about 1/4 of  Wellfully, but with some moderate success of reduit, bodyguard etc, this will be improved in all existing shareholders favour. hey, just something to ponder.