rights issue update

Once again nothing to alleviate shareholders anguish atm.. same old same old.. emptiness imo... i guess only positive is that their consistancy in not spicing things up continues ... whew.. still not impressed myself..


RIGHTS ISSUE – UNDERWRITING UPDATE
On 15 March 2013, OBJ Limited (ASX: OBJ) (Company) announced a capital raising
consisting of a pro-rata entitlement offer of new shares and free attaching options to
the Company’s existing eligible shareholders (Rights Issue Offer), and also a pro-rata
entitlement offer of new options to the Company’s existing eligible option holders
(Option Offer, and together with the Rights Issue Offer, the Offer). The Offer closed on
17 April 2013.
The Rights Issue Offer component of the Offer was fully underwritten by Novus Capital
Limited (Novus) pursuant to an Underwriting Agreement, a summary of which was set
out in the prospectus lodged with ASIC and the ASX on 15 March 2013 (Prospectus).
On 22 April 2013, the Company announced that it had received a notice from Novus
purporting to terminate the Underwriting Agreement (Termination Notice), on the
basis that:
? the terror attack in Boston, USA, on 15 April 2013 has had a materially adverse
effect on the Company, constituting a termination event described in section
8.2(r) of the Prospectus; and
? there has been a material adverse change in the condition, financial position or
prospects of the Company as a result of a decline in the Company’s share price
since the Company announced its intention to undertake the Offer, constituting
a termination event described in section 8.2(e) of the Prospectus.
The Company, in conjunction with its professional advisers, has considered the merits
of the Termination Notice and believes the Termination Notice is wrongful and invalid,
constituting a repudiation of the Underwriting Agreement.
In forming this view, the Company considers that Novus’ purported termination of the
Underwriting Agreement in reliance on the termination events described in section
8.2(r) and 8.2(e) of the Prospectus has no basis as Novus could not, on any objective
and reasonable view, consider that, at the time of the Termination Notice:
? the incident in Boston, USA had been an event which has materially and
adversely affected the Company or the Rights Issue Offer; or
? there had been a material adverse change in the condition, financial position of
prospects of the Company as a result of the decline in the Company’s share
price since the date of signing of the Underwriting Agreement.
The Company has advised Novus of its position in relation to the purported termination
of the Underwriting Agreement. The Company will provide further information to
security holders as and when any further developments occur in relation to this matter.

Effect on Offer
The Company intends to continue with the Option Offer, and the Rights Issue Offer on a
non-underwritten basis.
The Company will shortly lodge and despatch to applicants under the Option Offer and
Rights Issue Offer a supplementary prospectus, amending the Rights Issue Offer to a
non-underwritten Rights Issue Offer and reserving the right of the Directors to place
the shortfall from the Rights Issue Offer within three (3) months from the closing date
of the Rights Issue Offer (17 April 2013). As a result, all applicants under the Option
Offer and Rights Issue Offer who have lodged applications up to 17 April 2013 will be
provided the right to withdraw their applications for a period of one month following
the lodgement of the supplementary prospectus. The Company will defer allotment of
shares and options under the Option Offer and Rights Issue Offer until completion of
the applicants’ statutory withdrawal period.
The new allotment and despatch date, and other important details will be set out in the
supplementary prospectus.
- Ends –