Prospectus technicalities

Hi all,

Starting a new thread to deep dive into some of the technicalities surrounding the rights issue. Really hoping there are some corporations law experts/enthusiasts out there.

I have been thinking about if and how Star Bright can use the rights issue to gain control of the company or at least substantially increase their holdings above 20%.

Section 611 of the Corps Act outlines exceptions that allow a holder to increase their shareholding above 20% without a formal takeover offer. Subsection 10 states that a rights issue is one such exception.

My reading of the prospectus is that holders will be able to a) purchase rights off other holders and/or b) oversubscribe and pick up any shortfall.

Can anyone tell me if this means that Star Bright could soak up any unwanted rights and substantially increase their holding above 20%?

Based on some other quick research I saw that Star Bright cannot compulsorily acquire shares until they hold >90%. Does that mean that any such move is likely to significantly increase the share price (AHZ gets $20M and there are fewer shares available to buy/sell)? Thinking effective Chinese control may get us accelerated access to the Chinese market as well.