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1.2¢ vector resources limited

Ann: Cleansing Prospectus, page-112

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28/01/19

10:39

Post #: 37240753
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Originally posted by MeToo ↑

Hi apkjm, no it ‘s not just for 10,000,000 shares @ 2.2c = $220k. I have had a better read of the cleansing prospectus!

(A cleansing prospectus removes the automatic trading restrictions that are placed on shares issued with out disclosure. Seeing the approved issue of the vendors shares expired, they have now issued undisclosed shares to the vendors and the cleansing prospectus removes the automatic trading restrictions from them)

(I think this is a worry, but hey, GLV forgot about the really good performance rights and tried to issue them after they expired)

So it would appear that all the shares issued by the last 3B and any 3b prior to
xx-Apr-2019 will now have their trading restrictions removed, including the director’s performance shares!

According to the prospectus the issuing of the “vendors” shares has changed....it appears that all the shares issued by the last 3B will be covered by the cleansing prospectus. Including the director’s performance shares!

The primary purpose is to.....

“Accordingly, the primary purpose of this Prospectus is to facilitate secondary trading of the Shares that are proposed to be issued by the Company as referred to above and any of Shares that may be issued to sophisticated and professional investors under the Company’s 15% placement capacity and its additional 10% placement capacity to raise additional capital, made before the Closing Date, being 5.00pm on 23 April 2019. As at the Prospectus Date the Company has not arranged any issue of additional Securities to sophisticated and professional investors.

Refer to section 2.2 for further details.

“The completion of the acquisition of its 60% interest in the Adidi-Kang Gold Project has also resulted in the vesting and exercise into Shares of 60,000,000 Performance Rights held by Directors and Senior Management that were issued in December 2017.”

“The Company is obliged to ensure that the Shares issued upon their exercise ((the only things exercised were the performance rights)) are not subject to the secondary sale restrictions in the Corporations Act.

The Company is unable to issue a cleansing notice under section 708A(5) of the Corporations Act as its Shares have been suspended from trading on ASX for more than five trading days in the last 12 months.

Accordingly, the primary purpose of this Prospectus is to facilitate secondary trading of the Shares that are proposed to be issued by the Company as referred to above and any of Shares that may be issued to sophisticated and professional investors under the Company’s 15% placement capacity and its additional 10% placement capacity to raise additional capital, made before the Closing Date, being 5.00pm on 23 April 2019. As at the Prospectus Date the Company has not arranged any issue of additional Securities to sophisticated and professional investors.

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Hi MeToo
I also see in the prospectus page 15- 3.3 another indicator/concern that adds a bit of weight to you view methinks, being the total offer will not result in any share holder becoming a Substantial Shareholder, thus the vender shares will be issued in multi Accounts, thus staying under the (5%-Substantial Share Holder) so that means MGI don't have to issue any If or when ever they sell shares, give notice ann to the market.
An aside regarding locked up shares from memory, in short - the grey/tricky by design asx rules can amend lock up shares is by a portion of them being donated to a charity another think it is via bereavement etc.
Just saying. .

VEC Price at posting: 2.2¢ Sentiment: None Disclosure: Not Held
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