re: Ann: Underwritten Entitlement Issue and A...
To true Nathan. And no surprise who that is. KAB corporately run by Okap (PL, brewer) has appointed Komodo Capital (PL, brewer)to offer new options for expired options held by the underwriter.......Komodo capital.
Sept 2011.
For a pro rata non-renounceable entitlement issue on the basis of one (1) New Share for every two (2) Shares held by Shareholders on the Record Date at an issue price of $0.022 per New Share, together with one free attaching New Option (to be quoted) exercisable at $0.03 on or before 30 June 2013, to raise up to $3,136,377 before associated costs.
Underwriter The Entitlement Issue is conditionally underwritten by Oracle Securities. Refer to Section 6.2 for details regarding the terms of the Underwriting Agreement.
Underwriting Agreement Pursuant to an underwriting agreement dated on or around 21 April 2011 between Oracle Securities (as Komodo’s nominee) (Underwriter) and the Company (Underwriting Agreement), the Underwriter has agreed to underwrite the Entitlement Issue for 142,562,594 New Shares (Underwritten Shares). The Company has agreed to pay the Underwriter the fees set out in Section 6.2.1 in relation to Underwriting Agreement and the Komodo Mandate (i.e. the Underwriter’s fees form part of the fees payable to Komodo under the Komodo Mandate). The Underwriting Agreement permits the Underwriter, in consultation with the Company, to nominate and determine who receives the Shortfall Shares. The Underwriting Agreement also allows the Underwriter to appoint a Sub underwriter at its sole discretion.
Komodo Capital Mandate On 17 March 2011, the Company and Komodo Capital Pty Ltd (Komodo) entered into a corporate advisory mandate agreement (Komodo Mandate) whereby the Company engaged Komodo as its corporate advisor to manage all aspects of the Entitlement Issue (Engagement). The Company has agreed to pay Komodo or its nominee a fee of 7% of the value of the Entitlement Issue. In addition, the Company has agreed to issue that number of Options equal to 7% of the total number of Shares issued under the Offer, with an exercise price equal to the Share price on completion of the Offer, exercisable on the later of either 3 years from the date of issue of the Options or 30 June 2013. These fees include the Underwriter’s fees payable to Komodo pursuant to the Underwriting Agreement summarised in Section 6.2.2 below. The Komodo Mandate provides that the Company will reimburse Komodo in respect of all reasonable out of pocket expenses incurred in relation to the Engagement, providing expenses in excess of $2,000 each are not incurred without prior approval of the Company. The Komodo Mandate also contains indemnities and other terms that are considered standard for an agreement of this type.
You can only shake your head!
KAB Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
