Hi all I wanted to comfirm Senetas’ ownership of Eon and the...

Hi all
I wanted to comfirm Senetas’  ownership of Eon and the annual report does say 4.7% but there is also an explanatory note suggesting it could be up to 6% .  I have copied the section of annual report below . Ofcourse the Cr would see this % diluted but a starting point of 6% would be great as their holding may only reduce to 4-5%. Depending on the value of the company determined by the CR,  I wouldn’t be against to Ssnetas participating to maintain share ownership close to the 5%  level. I can’t imagine Imagine Eon easing more than 100m USD and this to represent any more than 25-30% of the value , possible much lower

The shareholding (which is preferred stock) also carries certain dividend rights which date back to the year 2000. The shareholding represents approximately 3% of the current issued share capital in EON Reality Inc (www.eonreality.com). Should EON Reality have a liquidity event (such as an IPO, trade sale or substantial capital raising) it may be necessary to convert the preferred stock to ordinary stock and receive the accumulated but unpaid dividend either as stock and/or cash. In that event the Senetas stock may represent up to 6% of the current issued share capital in EON Reality. The investment was made during the year 2000 and was since written off by the board. Until such time as there has been a liquidity event such as a capital raising, merger transaction, corporate restructuring, IPO, sale of securities or other such transaction which will provide the board with an independent value of the investment, the board will continue to not ascribe a value to the investment as an asset. However, it does point out that EON Reality Inc. is profitable with budgeted revenues in excess of US$44m this calendar year. EON Reality is the world leader in virtual and augmented reality based knowledge transfer for industry and education software.