Ann: UK DISTRIBUTION AGREEMENT SIGNED FOR MGC PHARMA MEDICINES, page-47

The Company Secretary told me:

"All UMP shares are currently with a broker to be sold, once all are sold the share price will be averaged out with all UMP shareholders receiving the average sale price. This price will not be lower than 2.4c per share. "

From what she aid I assume they have not been sold, she doesn't actually say it outright! As usual they are vague and it fees shady. If you are happy for your shares to be sold and wait for the money, that's ok. The rules say supposed to send cheques to former shareholders as soon as possible.

According to the rules, they have to wait about a week after expiry of their deadline and then average out the SP over that week and that's the price you should get for your shares. However from what Rachel said above, this isn't what they are doing, or if it is she didn't express it clearly. They really don't know what they are doing, and it seems just very loosely following the rules.

Listing Rules

The relevant ASX Listing Rule is L/R15.13 (SmallHoldings) which allows a company to sell the shares of holders of unmarketableparcels, no more than once in any 12 month period, provided its Constitutionmakes provision for such and the following terms are followed:

1. Shareholders must be notified in writing of theintended sale
2. Shareholders must be given at least 6 weeks’ noticebefore the small holdings sale takes place
3. Shareholders must be given the ability to ‘opt out’of the sale – ie, to advise that they wish to remain as shareholders
4. The company (or the purchaser/s) must pay the costsof sale
5. The holding must still be an unmarketable parcel atthe date of sale.
6. Proceeds must be sent promptly to [former] holdersafter the sale.

In addition, the company must be careful not toimply [in the notice/letter] that because a holding is classified as being lessthan a ‘marketable parcel’ for the purposes of the Listing Rules, the parcel isnot capable of being sold on market.