Kingsley, This is an issue which was raised at the EGM on the...

Kingsley,

This is an issue which was raised at the EGM on the 1st of June. I think that you have just got your terminology wrong. Resolution three of the EGM was as follows:

"Approval of Proposed Issue of Shares under Placement

To consider and, if thought fit, to pass the following resolution:
That for the purposes of Listing Rule 7.1 of ASX, and for all other purposes, the issue by the Company of a proposed placement of up to 11,000,000 fully paid ordinary shares at $0.30 per share in the Company to raise up to $3,300,000, as set out in the attached Explanatory Notes, is hereby approved."

The question was asked why this resolution was put when the shares were considerably below this price. No adequate response was provided and things have only got worse since then.

My understanding is that as this resolution was passed the directors are still able to make this placement should they see fit.

Please note I did not attend the Annual General meeting on 18 July where further comment could have been made. But I agree with your sentiment that management may have another motive given the current share price and a possible offer at 30 cents can not be positive for the share price. Couple this with the complete lack of communications it is disappointing.

Given Steve’s previous role at Kingsgate which was so focused on shareholder communications, his current performance appears to be out of character.

Wardy