Update 14/08/14

NXS Shareholders,

Nexus Battle has been occupied behind the scenes for many months trying to get a better deal for minority retail shareholders. Prior to administration, as you will be aware, Nexus Battle had gained significant media attention for the highly controversial actions that lead to the low-ball offer by SGH and its subsequent rejection, overwhelmingly, by NXS shareholders.

Whilst the overwhelming defeat of the Scheme of Arrangement set corporate precedents, ultimately the Scheme was doomed to fail regardless of how retail shareholders voted. Several groups of large shareholders that voted against were sufficient to ensure its failure.

Since administration, NBT have attempted to:

1. seek representation on the NXS Board,
2. develop a win-win proposal that could break the impasse between large shareholders and SGH,
3. enter the Gresham data room so as to progress such proposals with more clarity,
4. engage SGH directly,
5. seek the SGH share register and,
6. engage in discussions with ASIC and numerous other initiatives.
   

Each of these were blocked by administrators or the legal representatives or company officers of the relevant parties.

At the second creditors meeting, the creditors of Nexus accepted an offer from SGH that was lower than that rejected by shareholders in the Scheme of Arrangement. This offer is part of a Deed of Company Arrangement whereby all shares in Nexus will be transferred to SGH without requiring the consent of Shareholders. This action was planned well before the Scheme was accepted by the NXS board, and formed part of the likely actions detailed in the Scheme documentation. Shareholders will not see any return, and unsecured note holders will receive 75 cents in the dollar. This is a very distressing and possible outcome.

There are many angry shareholders, both large and small, including your Nexus Battle Team. We are all aware from the administrator’s report that legal options may be being investigated by others but we have no details on this course of action or if, indeed, they will eventuate.

Regrettably, we are unable to advise the current actions that NBT are pursuing so as not to lose tactical advantage. For now patience is required and we understand that is a precious commodity when talking about Nexus.

We will update you with what we can, when we can. In the meantime, maintain the rage and keep the HC forum alive.

Good luck and best wishes,

The Nexus Battle Team.