Ann: Results of Non-Renounceable Rights Issue, page-179

MeToo, Diversified Metals Holdings has the right to convert its payment of $2.14m into shares according to the nominated formula. Kogi has the right - under certain conditions - to repay the $2,14m (with a 5% premium). Now for the fun bit: is DMH obliged to convert, ie if it fails to exercise its right to convert, what happens? More importantly, if Kogi were to go into liquidation before DMT converted, what rights would DMH have, if any?

Kogi does not have an obligation - at least according to the ASX announcement - to repay the $2.14m. Therefore, I cannot see how the $2.14m can be classified as a liability which is why I think it is simply a poorly crafted equity deal.

It would be interesting to know if the structure was designed by DMH or by Kogi. Another reason for wanting to know where the $140,000 ended up.

Meanwhile, kevscranes has absolute confidence in Ian Burston and Craig Hart so shareholders can rest easy.