Some facts helpful for new SPP if it is undertaken by the...

Some facts helpful for new SPP if it is undertaken by the administrators

There were a few posts that were filled with different suggestions on how to raise the new finance. While they were all good suggestions are time consuming to organise and not really suitable in the present situation.

Documents preparation time for the new SPP

It will take one day to prepare the documents that needs to be supplied to the shareholders along with the SPP document.

So for example, the SPP decision had been taken in the meeting with our chosen future executive chairman, on 27-03-09, then the new SPP would have been in operation from 30-03-09.

Time the SPP offer has to be open.

Somebody in the know can correct me but I understand that needs to be open for three weeks. So in effect if the SPP was opened on 30-03-09, it would have been closed by 17-04-09 and shareholders would have spoken.

Incidentally by the time any decision is taken by the administrators would have been only after 17-04-09 SPP or no SPP anyway.

There is no justification from the above information for the administrator to be claiming that the time it takes SPP to be finished would not allow Ventracor to survive.

Infact by their delaying tactics the administrator is destroying our wealth and is definitely against the inent of the Corporations Act 2001 under which they are operating.

Maximum amount limited per account as subscription for the new SPP

Please note that SPP subscription are not restricted to one per person. They are per account on the share register.

For example, I have two accounts. One is on my personal name and the second is on my super with my wife.

So if I have the required funds, I can subscribe to two subscriptions to the maximum limit allowed per account.

I was led to believe that the ASX/ASIC if requested explaining the dire situation will permit A$20,000 per account.

So in effect I can apply for A$40,000 from the two accounts. There are a lot of shareholders with multiple accounts. Some as many as seven accounts spread between their family members and different super funds.

Basic arithmetic says if we got A$3.5 million subscriptions in the failed SPP in Nov/Dec. With the new SPP with a maximum limit of A$20,000 theoretically if the same people applied will be able to garner A$14 million dollars. That would have been better than the offer on the table.

Coupled with the reduction in expenses by removing the fat cats like Peter Crosby from payroll as their contracts ended and by reducing the salary of others not unreasonably, the reduced expenses would permit the company to try and survive until FDA approval is obtained.

Incidentally even with so much of the negative news floating around there are on going sales of the pump. I believe 5 were sold in March.