Equity raise process, page-5

You will receive correspondence by mail with an application form. If you have a look at the shedule in today's market release you can see the timetable. Shareholders have until late this month to convert their entitlement in full (or in part). Normally there is a facility to make this payment by way of EFT. So you have some time to raise the funds required and make the decision to invest. The shares are fully underwritten, which means that the entitlement will pass onto the underwriter and they will be obliged to convert them if the current shareholder doesn't do so. So Flight Centre will get the full $700M.

Reading between the lines, the raising seems to have significant support. The price is an accident of its last closing price unfortunately, but try when you are cap-in-hand its difficult to argue something is worth more than it's market price. Imagine trying to raise $500M (and actually getting $200M overs) for a business which right now essentially doesn't exist - unprecedented. It's a testament to Skroo's reputation and strength of the brand. Existing shareholders can maintain around 80% of their prior interest in the restructured company if they convert all their entitlement - I intend to.

Positives

• Substantial raising
• fully underwritten
• Weighty management investment
• Existing shareholders can maintain 80%
• Strong lender and landlord support, covenant waivers
• Relatively early in the capital raising cycle

Negatives

• Non-renounceable entilement (personal bug-bear)
• Company didn't go into suspension the day prior!!!