Lanstead Agreement
You are concerned the initial $843,000 payment received by LWP pursuant to the Lanstead Agreement is actually a loan to be repaid by reducing the monthly installments otherwise payable to LWP. You also want LWP to advise the market of the total funds to be received based upon current share prices.
ASX Response
ASX has confirmed with LWP that the EGM explanatory notes are correct and that the initial sum received is not a loan (and is therefore not being repaid in monthly installments). This confirmation also appears to be consistent with LWP’s half-yearly accounts lodged on 1 March 2017, which do not have a liability recorded relating to the repayment of this amount.
LWP’s announcement of 20 February 2017 advises that LWP receives no further funding pursuant to the agreement at the current share price of $0.001 and that funding does not recommence until the VWAP increases to approximately $0.0015.
My Response to the response
My point was that the monthly payments appeared to be reduced by approx 1/18th of the up front payment and that this had not been adequately disclosed in the EGM explanatory notes. In other words, why is each monthly payment reduced by a significant amount which is not explained in the EGM notes or shown in the example calculations?
