Reason for Investing (My Opinion), page-14

It would be interesting if you becoming top 20 removed enough shareholders for the ASX spread requirements to come into question.

The annual report stated that there were the following holdings:

	Column 1	Column 2	Column 3
0	Holding	Shareholders	Shares
1	1-1000	20	1,379
2	1001-5000	9	35,823
3	5001-10000	140	1,322,393
4	10,001-100,000	348	15,921,155
5	100,001-9,999,999	242	454,457,250

For the ASX spread requirements it is my understanding that with between 50% and 75% of shares held by related parties of the company or its directors the company must have at least 350 shareholders. I believe this is for shareholdings of minimum value $2000.

So, we have 242 shareholders within the 100,001 - 9,999,999 bracket all with more than $2000. However the only others that count towards the 350 required shareholders is in the 10,001 - 100,000 bracket. Of these only a small proportion of them would likely be above the $2000 threshold. The average holding in this bracket is only: 45,750 shares. At the market price of 2.4c at least 83,333 shares would need to be held. 108 holders are needed from this bracket to get to 350. As the share price drops the spread is dropping. When will the ASX start to question the spread?