reinstatement to official quotation, page-2

29 August 2011
FOR IMMEDIATE RELEASE
REGISTERED OFFICE Level 1, 284 Oxford Street Leederville WESTERN AUSTRALIA 6007 +61 8 9242 2999
PLACEMENT AND ENTITLEMENT OFFER
Pharmanet Group Limited (ASX: PNO) (Company) refers to the announcement to the market on 27 July 2011 advising of an equity raising program (Raising) to raise approximately $2.10 million (before costs) for working capital purposes.
Due to the recent market conditions, the Company and the Underwriters have agreed to vary the capital raising terms.
The Company was of the view that Shareholders should have a greater participation in the capital raising and accordingly has reduced the placement component and increased the entitlement offer to Shareholders. Market conditions have also necessitated the re‐pricing of the placing and the entitlement offer as well as the re‐pricing of the exercise price of the options as detailed below.
The Company and the Underwriters have agreed to revise the pricing of the Raising on the following basis:
 the placement of 100,000,000 shares (Tranche 1 Shares) at an issue price of $0.005 per share (raising a total of $500,000 before costs) with, subject to the approval of Shareholders, one free attaching option for every two shares subscribed for no additional consideration;
 subject to Shareholder approval, the placement of 60,000,000 shares (Tranche 2 Shares) at an issue price of $0.005 per share (raising a total of $300,000 before costs) with one attaching option for every two placement shares subscribed for no additional cost;
 a non‐renounceable pro‐rata entitlement offer to existing eligible shareholders with a registered address in Australia or New Zealand and other jurisdictions in which the Company has decided to make the offer on the basis of two (2) fully paid Shares (New Shares) for every nine (9) Shares held at 5:00 pm WST on the record date (expected to be in August 2011) at a price of $0.005 per New Share to raise approximately $1,300,664 before costs (Rights Issue). Applicants for New Shares will also be issued with 1 new option for every two New Shares subscribed for under the entitlement offer at no additional cost;
 subject to shareholder approval, an offer of options to eligible optionholders on the basis of two (2) options for each nine (9) options held on 30 June 2011 (which have now expired) at the issue price of $0.0001 per option; and
 subject to shareholder approval, the grant of 100,000,000 options to CPS Securities in consideration of them acting as lead manager and underwriter.
The placement completed has been made to sophisticated clients of CPS Securities. CPS Securities has also agreed to underwrite the entitlement offer under normal commercial terms and conditions.
The Company will be seeking ASX quotation of the shares and options issued under the Capital Raising. The holders of Tranche 1 Shares will be eligible to participate in the entitlement offer with respect to their Tranche 1 Shares. All options issued pursuant to the Capital Raising will be exercisable on or before 30 June 2013 at an exercise price of $0.0125.
The Company intends to announce the final terms and timetable for the rights issue and the shareholder general meetings shortly.
? Ends ? For further information:
Pharmanet Group Limited Level 1, 284 Oxford Street, Leederville, Western Australia 6007 Phone: +61 8 9242 2999 Fax: +61 8 9242 5903 Email: [email protected]