Ann: Update - Proposed issue of securities - R3D, page-5

The company had $3k in cash at end of December. For the directors to maintain that the company remains solvent they must be relying on the placement to directors ($225,000) that still requires a shareholders meeting to approve before funds become available. And that the rights issue remains on foot and may raise funds. The rights issue will not raise any material funds unless the share price is well above 6cts. Have any shareholders kept their documents? The stop start nature of production has meant that the plant needs to be re-commissioned every time as seen in that many bags of production were off-spec. In any event, production to date has been desultory. Brave move by the Chairman to offer a personal guarantee to the note holders, although those note holders have some security that he would take over if guarantee is called.