convert notes what's the go, page-3

Doesn't anybody do their own research out there JIMJIM. You really shouldn’t be investing if you don't at least read up on the company.

They placed 20 Million dollars in convertible notes, see ann. on 8th Feb 05. They where hoping for between 10 and 50M and obviously could only place 20M. Phil has told me he has a strong preference is non-diluting finance, and that we need AGM approval to issue anymore notes as time has caught up with them.

Therefore, they have obviously been taken up. The first payment was made, see ann. of $5.10 per note. see Half Yearly:

"In February 2005 the company received funding of $9,999,998 representing the initial payment of $5.10 per note in respect of the issue of 1,960,784 converting notes at $10.00 per note. This issue was part of the issue of converting notes approved by shareholders at the Annual General Meeting held on 10 December 2004. Procurement and Selldown fees relating to the issue totalling $1,325,000 have been paid by the company. The Company has an ongoing arranger agreement with Intrepid Finance International Limited to act as arranger for capital restructuring and financing."

So we should presumably get the other $4.90 in two years time from the listing date, 8th Feb 07 as which stage they will convert to 200M shares, from April Quarterly:

"$20 million in Converting Notes were placed with Intrepid International Finance Ltd which were subsequently placed with other institutional overseas investors. There were 1,960,784 notes placed at a face value of $5.10 each and there is another instalment due of $4.90 per note in February 2007. On payment of the final instalment, the notes convert to 200 million ordinary shares."

Leveraged Capital are potentially linked to MTM holdings now that I think about it. They must have sold Leveraged their 25M options they converted early in June 05. Don't quote me on this, but as MTMs holding hasn't increased by 25M it would make sense. Thus, I can't see Leveraged being involved with Index as surely MTM, the biggest shareholder wouldn't be too happy with somebody messing around with the price so much. Especially when you are going to be converting another 62.5M (which must have occurred by now according to ann.) and probably looking for a buyer to offload them onto considering that they offloaded the first 25M. I wonder if they made any money out of the first lot. Probably did convert though, with the recent sp advance providing a price gap to offload the shares to increased parties at a profit. Maybe these two announcements where timed as such?.

The Index options deal is intriguing. They had 7.44% of the company in May. Did they not have to provide notice of becoming a substantial holder. I thought anything over 5% and you had to inform market?

Chipperbill, if Leverged are USA based, wouldn't you expect the Aus branch to be getting bailed out by big brother in the US?