Ann: Section 708 Notice, page-12

Well not exactly..

The issued capital was 1.5m shares @ $135,000 which is 0.09 per share.. the strike price on options..

So it’s overhang from the conversion.. which as a result of shortfall the company can issue shares at its discretion following the legislated requirements of section 6D of the corporations act 2001:

http://www5.austlii.edu.au/au/legis/cth/consol_act/ca2001172/

and under the ASX listing rules 7.1and 7.1a in respect of its ability to issue both 10 and 15 percent of issued capital.. (which was voted on and passed by shareholders at the last AGM)

https://www2.asx.com.au/content/dam/asx/rules-guidance-notes-waivers/asx-listing-rules/rules/Chapter07.pdf


Under section 6.2d of the corporations act 2001 section 708a is applied in conjunction with the asx listing rules of continuous disclosure found here:

https://www2.asx.com.au/content/dam/asx/rules-guidance-notes-waivers/asx-listing-rules/rules/Chapter03.pdf

Specifically section 10.3.5

So regardless of the nature of the recipient of the 1.5m shares (they may or may not be sophisticated investors in this instance the rules applied come under s708).. Inca has completed its continuous disclosure obligations and issued capital in accordance with the 15 and 10 percent listing rules..

As far as the 16m cash goes, the funds are there and there should be no need for any further capital raises this financial year, hence the use of the rules