Hi Avent, thanks for the note, but I have to say that I...

Hi Avent,

thanks for the note, but I have to say that I completely disagree the interpretation. The company can only issue shares at their underlying value, 7.65c and The proceeds of $4.65m is absolutely cast in stone. That is the Law under the corporations act. The payment on a deferred basis of this sum is guaranteed. The reference to 10.2c is designed to limit Lansteads upside. Look again at the first para on the Subscription section about the company(akk) limiting Lansteads participation in the subscription shares.
this is fundamentally a loan from Lanstead for 2 years dressed up as a share placement and Lanstead receive their interest up front by way of fee and share in the upside by receiving 100% of any share price appreciation up to 10.2c. And of course they will have 20%of the company! which hopefully will be worth more than toilet paper!
It really is a lovely way of structuring the deal, no formal debt on the BS and no interest to pay, but by taking the fee upfront and immediately expensing, this has hurt the SP short term. With some funding secure, we can now focus on the underlying business of monetising the black stuff and seeing how effective Hart and the boys are at that. When the price of crude recovers, there are options still available to leverage akk's reserves.

hope that clarifies somewhat.

W