re: Ann: Request from members to hold a gener... Thanks...

re: Ann: Request from members to hold a gener... Thanks Dargie

You make many good points as well.

When it comes down to it I am all for a process restructure/takeover where we receive a compensation for the structure and tax losses.

Your calculation of the value of the tax losses is reasonable . But there comment to me was they are not attributing any value to them.

My optimum situation would have been a capital return followed by a takeover bid recommended by Trust Co for all the units in the trust with a minimum acceptance of 50.1%. Following this they could do as they pleased.

The value of the premium for the losses and structure is debateable . But a value of day 3 to 6 cents would sound unreasonable.

Save this not being proposed. I still believe the capital return should be undertaken first . Following this its the actual makeup of the recapitalisation that should decide the current unit holders vote. Once we know the number of shares being issued and the value , you can effectively determine what value if any is attributed to the tax losses.

Lets say they don't alter the existing capital and issue $10m of new shares and issue them for say 2cents ( prior to recap) then they would issue 500m shares , Then we would have 676m shares on issue with cash of $10. that would be an intrinsic value of about 1.5 cents per share. Therefore they would be attributing 1.5cent per share for the losses to existing holders . They would obviously consolidate the share but that gives you the general idea. They are probably likely to issue new shares at 20cent or so and consolidate the existing holders share, If they did the above and consolidated our share 10 for 1. leaving existing holders with 17.6million and new holders at 500m. the value attributed to existing holders would be 0.15 cents per share and crazy. So you point that they are not taking the losses from us as we still have our shares is not really correct as they will dilute the value away from us by issuing new shares

You may say but they are giving us the option of buying new shares. But they aren't offering them to us at more favourable terms than others , so they are . You would need to consider and subscription for new shares in Max as a new investment. You shouldn't have to subscribe for new shares to maintain your value of the losses

The other point to note is that the accounts provide for about $488,000 for winding up the trust. That's another .0028 cents per share . which makes the actual nta at about 16.88 cents per share if windup is not undertaken.

Who knows there may be another group out there that may also see value in the losses and put an alternative proposal forward. Alternatively the non aligned larger shareholders may push their weight around enough to ensure something reasonable is left on the table for existing holders to make the deal worth while.

I have put my views forward to them . Anyone else that is feeling the same should give them a call as well.