Hi Walker,Actually you are right, they don't have 30mil shares,...

Hi Walker,

Actually you are right, they don't have 30mil shares, it is actually worse than that.

I was reading the retail clients of BNP Parbis from the T40, not the 4th largest shareholder BNP Parbis (DRP).

If you go through all of WKT's previous T40 lists and shares issued when they have converted their equity , you can match the shares issued with BNP Parbis DRP. As you would be aware they have been selling their shares once they were issued and the last 2 notices show they were issued ~23mil shares.

If my assessment is correct, BMCG held 16.3 mil prior to the 6 months ASX holiday, which means their entitlements would have been around 10.8mil shares ($1.1mil). It is interesting to see they have only taken up around $140k from the entitlement which may have been their fees as the advisors to the capital raising.

Anyway, I thought Mike Elliot advised in the companies Equity Capital Raising Webcast in September that BMCG were going to take part in the offer, I assumed this was them taking up their full entitlement not $205k.

Getting to my point, BMCG were the advisor of the capital raising, WKT had an option for another US$4mil ($5.87mil AUD) from BMCG which expired just before the company went into administration, do you honestly think if everything was as fantastic as the promoters are claiming on HC, BMCG wouldn't have taken up their full entitlement of $1.1mil?

After going through the above and seeing BMCG didn't back up the truck for the "priced to sell" capital raising, I form the opinion that WKT will either need to alter the floor price with their agreement with BMCG from 12c or BMCG will ask for its funds to be returned.

BTW, the above isn't suggesting WKT's announcements are incorrect, WKT might have assumed that BMCG won't ask for their funds back, If WKT is unsuccessful with obtaining its finance, why would BMCG keep its unconverted equity with WKT?

We already know WKT has breached the agreement by being suspended for more than 5 days, BMCG can elect to have its funds returned at any time.