Ann: Reinstatement to Official Quotation , page-10

Sent an email having a go at management for not offering SPP to all shareholders the other day. Response below:

I respond to your email to the Managing Director dated 30 November, 2012.

Usually an Australian listed company can issue up to 15% of its stock without shareholder approval. It can also put in place a shareholder participation plan at any time. Unfortunately, the EU has issued a prospectus directive which governs the UK as well. It seems the UK has lost sovereignty over its own company laws and listing rules.
This directive forces UK listed companies to issue a full prospectus if they issue more than 10% of their capital in any 12 month period. As a result,we were forced to limit our raising to only 38,500,000 shares being 10% of our issued capital. We also cannot provide an SPP without breaching this directive. The cost of a full prospectus is very high in the UK and would make the capital raising rather expensive, particularly when we are not raising one cent from outside Australia!

We were very mindful of looking after all our retail shareholders but legal advice revealed this restriction and has prevented us from making any further offering for the time being . However, we are not happy with this
limitation and we are reviewing the value of the London listing to this company.

Yours sincerely,
Michael Cooke
Group Legal Counsel