Annual General Meeting, page-6

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vandei

629 Posts.

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02/11/15

17:48

Post #: 16310693
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Originally posted by Simon&Louise ↑

I think you will find their strategy is with the following:

11. RESOLUTION 10 – APPROVAL OF 10% PLACEMENT CAPACITY

11.1 General

ASX Listing Rule 7.1A provides that an Eligible Entity may seek Shareholder approval at its
annual general meeting to allow it to issue Equity Securities up to 10% of its issued capital (10%
Placement Capacity).

The Company is an Eligible Entity.

If Shareholders approve Resolution 10, the number of Equity Securities the Eligible Entity may
issue under the 10% Placement Capacity will be determined in accordance with the formula
prescribed in ASX Listing Rule 7.1A.2 (as set out in section 11.2 below).

The effect of Resolution 10 will be to allow the Company to issue Equity Securities up to 10% of
the Company’s fully paid ordinary securities on issue under the 10% Placement Capacity during
the period up to 12 months after the Meeting, without subsequent Shareholder approval and
without using the Company’s 15% annual placement capacity granted under Listing Rule 7.1.
Resolution 10 is a special resolution. Accordingly, at least 75% of votes cast by Shareholders
present and eligible to vote at the Meeting must be in favour of Resolution 10 for it to be
passed.

This caught my eye when I read it...

What is everyone else's views on it?

If it passes then MMJ can issue up to 10% of current issuance without shareholder approval. So, this resolution is effectively us voting on whether we are happy for them to raise additional capital within the next 12 months without a vote.

Approving a CR without seeing the terms anyone?

Expand

I think a big issue moving forward will be accountability and responsibility to the shareholder. If further capital raisings are required (looks likely) then they must demonstrate gain to shareholders as we wont be seeing any dividend soon and further dilution will really start to hurt. This requires a clarification of specific strategy and some risk identification rather than all sky is blue until be get to the quarterly report.

MMJ Price at posting: 28.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

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