Caliente , as a follow up to my last post, I believe I have...

Caliente , as a follow up to my last post, I believe I have discovered the source of some of the remaining shares owned by Celtic.

The agreement with Celtic states that interest is due monthly on both its convertible securities and Promissory notes ( providing bridging finance of $700,000 and $1,200,000 respectively but which are "valued" at $1,400,000 and $1,800,00 respectively ) .

Due to AYN's default ( suspension of Shares on the ASX for more than 5 trading days between 10 April 2013 and the maturity date for the securities and the Company is suspended from ASX for more than 5 trading days post 31 July 2013 for the notes) the interest rates are 18% and 15% respectively.

As an aside, this is very troubling - in that AYN appears to have been in default only a few days after signing the original bridging finance agreement with Celtic ( late March/ beginning of April ) - Suspension started on the 9th of April. And entered into the second agreement whilst in suspension .
I dont know much about bridging finance, so maybe this what happens normally, and the situation was that desperate. The prospectuses did outline the size of Celtics holding post SPP (301,879,218) and the large dilution that would occur due to acceptance by the July 15 GM , but it appears to have been understated by
about 561M -48 -140M -302M = 71M shares.

So back to the interest component :

This interest had to be paid as shares according to the prospectuses :

For the Convertible Debt Securities it is calculated by dividing the monthly interest repayment by either (at the sole discretion of holder) $0.004 or 80% of the VWAP over the ten days (on which trading in Shares occurs) before the receipt of a conversion notice.

For the Promissory Notes Lesser of $0.01 and 85% of the VWAP for Shares over the five days (on which trading in Shares occurs) before the receipt of
a conversion notice.

I'm not sure which trading days would be used for VWAP as the stock was in suspension for the whole period that interest was accruing !

So, assuming Celtic would have demanded the lesser amounts I'll use 0.004 as a rough value, 5 months for the securities, 3 months for the notes

(($1400000/$0.004) x 0.18 x 0.42 years ) + (($1800000/$0.004) x 0.15 x 0.25 years)
= 43.3M shares

Still short about 30M shares but thats the best I can do at answering the original question. I needed to understand for myself. Not sure if I I've got the facts all right - the prospectus are hopelessly convoluted. Hope it is of some use to anyone else who wanted to know how this came to be ...