Ann: Renounceable Entitlement Offer to Shareholde, page-23

re: Ann: Renounceable Entitlement Offer to Sh... yurana, the rights will be given their own code (maybe KEYRA?) and trade totally separately of the underlying KEY stock.

As you hold 500K KEY, you will be entitled to 250K of the rights. The price of the rights will be linked to whatever the KEY SP does.

For example, if KEY trades at 13c, theoretically the rights should trade at approximately 2c each. I suspect, given the volume issued, that they will trade at a discount (ie closer to zero) if we don't hear too much in the way of news from KEY management. You will be able to sell your rights for say ~$5K (ie. 250K x 2c) if you wish, or continue to hold them to expiry. For those who hold the rights at expiry, the decision is whether to do nothing, or come up with 11c per right, in which case you will shortly thereafter receive additional fully paid shares.

On 250K of rights, you will need to come up with $27.5K of cold hard cash.

Which brings me to my last point - I still believe that management might have an announcement or two in the offing. The rights issue is not underwritten, and one would think the SP will track back to around the issue price for the rights. If this is the case, take up of the rights would be expected to be quite poor, unless the SP remains strong.

Plenty of decisions for holders in the next month or so.