Ann: Trading Halt, page-64

rroodd,

Given that KZA is a pre clinical company with no revenues, how do you suggest it raises cash to fund its activities? A capital raising is the only way. We may argue about whether a capital raising at 80c is appropriate or maybe the company should have waited until the SP was a little higher, but the fundamental need to raise capital remains unchanged. This principle applies to all pre revenue companies. I think we can all agree on this.

Further, you mention that Kazia management are "looking after themselves first with bucket loads of free options". I am sorry, although the options may be free, it costs the holder to covert the option to a share. An option gives the older the "option" but not the "obligation" to purchase a share at a strike price determined now. If you read the Explanatory Statement CAREFULLY, you would have noticed that the strike price has been determined to be at $0.8812. Therefore, management will have option to PAY $0.8812 per option it exercises and converts to a share.

Just for your benefit, the SP did dip below $0.40 last CR, but it quickly rebounded to the current SP of $0.96 (almost 100% increase) on less meaningful data than what we are expecting in the next couple of months.

I am all for informed debate here on HC, but please, half truths and misinformed comments do not belong here.