what does this mean?, page-3

Hi SB

If you bought $5000 worth (now 100,000 shares) you would have the option of purchasing 100,000 shares for $1800 when the rights issue is brought online. Additionally you would get 50,000 options to purchase ARX shares at 3.6 cents - and realistically these will be highly sought after - particularly if it continues trading at this level or higher.

The rights issue prospectus will be sent out to people on the ARX register on about 27 October. I would expect the new shares and options will be available for trading in December or January.

Using the calculations I've worked through for an idea on value of buying right now, the estimating is that if the price stayed at 5 cents when the rights issue was complete, your purchase of 100,000 shares at 5 cents would be worth $9,260. The break even point (where the share price can drop to and you don't lose money) is about 3.3 cents.

Regards

Tim