pillman just a courtesy, page-9

re: molopo for sale I checked it out - There is a clause fom ASIC that has been developed for this exact situation, EG the reconstruction of the share value in an organisation based around sale or issue of more shares.

"In the event of any reconstruction (including consolidation, sub-division, reduction or return) of the issued capital of the Company prior to the Expiry Date of options, the number of Options or the exercise price of the Options or both shall be reconstructed in accordance with the Listing Rules applying to a reorganisation of capital at the time of the reorganisation."

This statement is in accordance with Listing Rule 7.22. Chapter 6 of the Listing Rules from Listing Rule 6.14 onwards also states the 'Rights and obligations that apply only to options'.

Essentially, under the Listing Rules a share placement does not automatically require an adjustment to a company's options. For example, if the company wanted to change the exercise price of an option after a placement of shares, it would be necessary for them to seek shareholder approval first. Also, if a change to a company issued option had occurred the company would be required to announce this to the market.