exrecise of mxro options by cob 30 june08, page-17

Dear oh dear GG !
What is wrong with a company that has a load of MXRO deciding to convert those and gain the benefit of the conversion through the 1 : 4 bonus issue of MXROA.

The fact that it is a related company surely has nothing to do with it.
I for one would expect that as they are a related company then they would exercise them.

For example. NZ Oil & Gas last year floated off Pike River Coal (PRC) on the NZX. Now NZO had about a 55% shareholding in PRC after the float. Then it sold down that shareholding to two Indian industrial firms that will be taking a bout 50% of the coking coal produced by PRC.One of the firms got about 12% and the other got about 8%. That left NZO with around 34% of PRC.
Now late last year it was decided that rather than rely on the bank arrangements that they had available for the further costs involved in developing the mine that a capital raising would be carried out. Options were offered to shareholders on about a 1 : 3.4 basis.
Now NZO and the two Indian firms took up those options that their shareholding entitled them to and paid up the NZ$0.90 cents that was required.
Now according to your view GG that was a terrible decision to make. Totally reprehensible. PRC was nowhere near production. They had still a difficult and tricky section of tunnel to drive into get to the coal. In fact they are still not there yet.
But according to your ruling NZO and the two Indian firms were totally out of line making that committment on behalf of their shareholders.

I think you are whistling in the wind there GG. Your arguement just does not stack up.