Hi Names The term "Additional Shares" refers to shares in...

Hi Names

The term "Additional Shares" refers to shares in addition to your entitlement.

So if you currently hold 300,000 shares, your entitlement is 100,000 shares on a 1:3 basis.

If you apply for, say, 50,000 "additional shares" you are applying for your entitlement of 100,000 shares and the 50,000 additional shares - 150,000 shares in total.

The 50,000 additional shares is also part of the "shortfall" which is underwritten to $4M.

If every shareholder took up their entitlement there would be no shortfall and total funds raised would be $11M. There would be no need for GMP to take up any shares. This scenario is highly unlikely and there will be a shortfall.

By applying for 50,000 additional shares, you are reducing the shortfall pool amount by 50,000 shares and potentially reducing the $4M underwritten amount.

The Company has a discretion whether or not to accept an application for shares in addition to a shareholder's entitlement thereby keeping space in the shortfall pool for the $4M underwritten amount.

Hope this helps.

Please DYOR.