Here it is Pete....1. RESOLUTION 4 – RATIFICATION OF PREVIOUS...

Here it is Pete....

1. RESOLUTION 4 – RATIFICATION OF PREVIOUS ISSUE OF 100 MILLION OPTIONS.

ASX Listing Rule 7.4

Listing Rule 7.4 permits the ratification of previous issues of securities made without prior shareholder approval, provided the issue did not breach the 15% threshold set by Listing Rule 7.1. The effect of such ratification is to restore a Company’s maximum discretionary power to issue further shares up to 15% of the issued capital of the Company without requiring shareholder approval.

On 29 June 2006, the Company announced to the ASX that an Option Undewriting agreement had been concluded with RM Capital Pty. Ltd. On 16 August 2006, the Company further announced that the terms of the Agreement had been renegotiated and that the underwriters had agreed that the $155,000 fee would be settled by the issue of 100 million options and a cash payment of $115,000 in lieu of the previously agreed fee.

This revised option issue did not require prior shareholder approval under Listing Rule 7.1.

Information required by ASX Listing Rule 7.5 for the purposes of shareholder approval under ASX Listing Rule 7.4 is provided below:

1. The number of securities issued was 100,000,000 options to acquire shares in the Company;
2. The 100,000,000 options were issued for a total consideration equivalent to $40,000;
3. The options were issued on the terms and conditions as outlined in Appendix A;
4. The options were issued to RM Capital Pty. Ltd. On 10 October, 2006;
5. There were no funds raised by the issue. The issue was in part consideration of the fee payable to RM Capital Pty. Ltd. For underwriting the shortfall in the exercising of the Company’s options which expired on 30m(sic) June 2006.

End copied text.

So they sneakily kept the amount of options to just equal to 15% of the issued capital. Now they’ve got RM in their back pocket so to speak. They should have paid cash for the fee.

Stinks if you ask me.