non renounceable rights issue

It has been about two years since holding shares in CTF which back then had some pretty exciting prospects with medical /natural disinfectents, etc. Having watched the sp fall from grace I can only wonder at how this has been allowed to occur ?

Today's news must send some concerning messages to current holders of CTF.
A placement at 3 cents to raise 74 grand? they have to be kidding don't they ?

And a current sp of 3.9. ?

There could be a few buyers who pre placed orders and went to work today who wished they hadn't if the usual hapens and the sp drops to the level of the placement and/ or issue.

I can't work out how a 2 c issue with one free attaching oppie gives the "same value" as a 3 c placement ? It looks better value than the placement doesn't it ?


The options could be worth buying when they commence trading as two years from now could see some jv emerge if the product is presented to a partner who can convert the potential the product always had.

But the existing oppies being at 25 cents with a conversion in May 08 virtually commits them to the wpb.
I look forward to reading ctf threads again over the next month or so to see what other hc posts summize.

The news............


Citrofresh®
International Ltd
Citrofresh® - The only natural choice.
Citrofresh International Ltd
2/55 West Fyans Street,
Newtown Geelong Victoria 3220.
AUSTRALIA.
PH: 61 3 5221 5111
FAX: 61 3 5222 1871
Email: [email protected]
Website: www.citrofresh.com
June 6, 2007.
ASX Limited
Company Announcements Office
Level 45, South Tower
Rialto
525 Collins Street
MELBOURNE VIC 3000
Dear Sir/Madam,
COMPANY UPDATE AND PROPOSED NON RENOUNCABLE RIGHTS ISSUE
The purpose of this announcement is to provide an update to shareholders in respect to important
developments within Citrofresh International Limited (“CTF”).
1. Stock Repurchase
On the 1st March, 2007 (and updated on 13th April, 2007) CTF announced that a company associated
with its Managing Director, Mr Ravi Narain, would purchase all stock of CitrofreshÒ products held by
the Company which are not required for immediate sale and to settle additional amounts due to the
Company, to a value of $310,372.
It was noted at the time that the settlement of these transactions were to be dependent on Mr Narain
arranging a new finance facility, which had been subject to certain delays.
Mr Narain has now advised that his new facility has been conditionally approved and will be
operational during the coming week. The Company is pleased to advise that to date a part payment
of the re-purchase of stock (to the value of $104,000) has been made by Mr Narain. This will leave a
balance of $206,372 payable.
The independent Directors will continue to work closely with Mr Narain to finalise this transaction, as
well as a further payment of $165,827 (in respect to a debt owed by its South African agent) on or
before the end of June, 2007.
2. New Operational Arrangements
The Company had previously announced that it had entered into new operational arrangements with
Mr Narain from 1st March 2007, whereby Mr Narain would bear the cost of all operational expenditure
relating to sales, marketing and distribution of CitrofreshÒ products on behalf of the Company.
The Company is pleased to advise that this new arrangement has been working effectively and that
sales since 1st March 2007 have increased significantly. Under the new arrangements, CTF will
receive a 17½% margin on all sales made. The recent sales of CitrofreshÒ products include
transactions to China, Taiwan, France and other parts of Europe.
The Company expects these new arrangements to provide CTF with an excellent source of ongoing
cashflow and profits stemming from its ownership of the world-wide marketing and naming rights for
CitrofreshÒ products at minimal cost.
3. Future Direction and Funding
The Board of Citrofresh International Limited met on Monday, 4th June 2007 and finalised a funding
plan to assist in shaping the future direction of the Company.
In order to assist the ongoing development of the Company and to undertake this in an orderly and
timely manner, the Board have agreed to undertake a placement of 2,490,000 new fully paid ordinary
shares at three (3) cents each which will raise $74,700. Melbourne Capital Limited (“MCL”) have
agreed to manage this placement on behalf of Citrofresh International Limited and this should be
finalised within the next few days.
The shares to be placed shall be issued in a capital raising within the 15% in 12 month limitation set
out in ASX Listing Rule 7.1. All of the investors subscribing to the placement are either “sophisticated
investors” or “professional investors” within the meaning of these terms given in section 708 of the
Corporations Act and accordingly, the Company shall be exempted from compliance with the
disclosure requirements to the investors pursuant to section 708 of the Act.
In addition, the Board is pleased to announce that it proposes to proceed with a non renounceable
Rights Issue (“the Offer”) to its existing shareholders.
The Offer will be made pursuant to a prospectus. Details of the Offer include:
• The Offer will be made on the basis that one new share will be offered for every one share
held by shareholders at the entitlement record date;
• One new option for every two shares subscribed for under the Offer. The options shall be
exercisable at two cents on or before 31st May 2012;
• The Offer will be made at an issue price of two cents for every new share issued with the
attaching options issued free; and
• If fully subscribed, the Offer will raise up to $1,052,668 prior to costs.
The Board has taken this action principally for two reasons:
• First, to ensure that all existing CTF shareholders have the ability to participate equally on
the same terms as the recent abovementioned placement; and
• Secondly, to also ensure that the company is sufficiently funded in the shaping of the future
direction of the Company.
The Company anticipates finalising a prospectus detailing the terms of the Offer including the Offer
timetable in coming weeks.
The Directors will report further on these developments as they come to hand.
Yours faithfully,
Shane Tanner & Mark Simari
Independent Directors
Citrofresh International Limited