Dirk- Letter, page-12

Listing Rule 7.1 allows every company listed on the ASX to issue 15% more shares in a 12-month period without prior shareholder approval. It allows capital to be raised quickly if necessary whilst avoiding the delays that would accompany the need to first organise an EGM, and the consequent risk to shareholders that could involve.

The ASX considers this provision to be important for the control of liquidity risk and considers 15% to be an appropriate limit for this purpose. It is not a ‘carte blanche’.

It would be up to each company to assess whether its shareholders are sufficiently informed or if the listing rules need further explanation.

The Company is seeking to maintain that normal level of capital flexibility via the EGM resolutions.