audeo: sketched potential for dilution, page-45

gogo

Here is a good reference for return of capital and how it can be done.

many people get it wrong and assume it is done by just sending s cheque out but can take many forms.

http://www.grantthornton.com.au/Publications/Newsletters/ta_0408a.asp


Andrew- I don't know a specific answer but you would hope smart management would try and ensure a structure that doesn't piss em up against the wall and details may be in tax treaty and transfer pricing sections of both the ATO and US Inland Revenue. Unfortunately with stars in their eyes and billion dollar future expectations ( cough cough) it is small change. Probably too busy doing fluff pieces and sorting mega housing to be concerned. ATO section 25a part 6 is transfer pricing from memory


The $37 mill in exchange for 7.5 million shares was referred to as internal loans being repaid - so a financial transaction - no profit no loss as they were not interest bearing. That has not transferred any losses from oncology to the ACL fonda structure however there is losses withing the ACL fonda structure.

From the Audeo S1

"the past, our business has been financed by Alchemia Limited and, as of March 31, 2012, approximately $27.9 million of related party loans made by Alchemia Limited to us were outstanding. After giving effect to additional loans made to us by Alchemia Limited subsequent to March 31, 2012 (including a loan of approximately $7.5 million made on June 28, 2012), and including effects of foreign currency translation of approximately $0.9 million, a total of approximately $37.6 million of related party loans was outstanding as of June 28, 2012. On June 28, 2012, Alchemia Limited converted all of these related party loans into newly-issued ordinary shares of Alchemia Oncology and, as a result, the loans were cancelled. We subsequently issued 7.5 million shares of our common stock to Alchemia Limited and, in return, Alchemia Limited transferred to us all of Alchemia Oncology’s outstanding ordinary shares in the Reorganization. We sometimes refer to our receipt of the cash proceeds from the additional loan made to us on June 28, 2012, the conversion of all of these outstanding related party loans into newly-issued ordinary shares of Alchemia Oncology and the cancellation of these loans as the Loan Conversion"