Trading Halt - 28-Aug-15, page-22

Hi dougfr,

Firstly, I don't see any risk whatsoever to the existing shareholders of POK other than if current arrangements between POK and Buddy were to be terminated, which I believe to be highly unlikely given the happy demeanour of Buddy's CEO today.

Re: reverse stock split and Section 3.9 (the 20 cent rule) – The new policy recognizes that where an entity’s securities have been trading on ASX at less than 20 cents, having to undertake a consolidation or other restructure to facilitate compliance with the 20 cent rule prior to, or in conjunction with, a capital raising can impose structural, timing and other impediments to the completion of a transaction that might otherwise be in the interests of an entity and its security holders. In such a case, ASX will consider a request from the entity not to apply the 20 cent rule provided: 

The issue price or sale price for any securities being issued or sold as part of, or in conjunction with, the transaction:


• is not less than two cents each; and 
• is specifically approved by security holders as part of the approval(s) obtained under Listing Rule 11.1.2; and 
• ASX is otherwise satisfied that the entity’s proposed capital structure after the transaction will satisfy Listing Rules 1.1 condition 1 and 12.5 (appropriate structure for a listed entity).

Update to ASX Listing Rules Guidance Note 12 Significant Changes to Activities

To my understanding, conditions precedent for the completion of the acquisition will include among other things, the issue of shares in Potash under a capital raising in an amount sufficient for Potash to re-comply with Chapters 1 and 2 of the ASX Listing Rules. The initial Option Agreement to acquire Buddy was announced to the market on 20/07/2015 after POK opened @ 4.9c so the issue of 150m shares to raise $7.5m was only representative at the time of that market release. I would be more than happy for Potash to announce a CR @ 5c on a pro-rata basis to existing shareholders, but I doubt that will happen, nor would it be in the Company's best interests when it is already trading at a +200% premium.
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Pros and cons of conventional versus back door listing on the ASX





As mentioned above the incoming CEO appears to be in very good spirits today... and I suspect this probably has more to do with pouring gasoline on the fire than his fav footy team winning...











@thepylee

Bloody downrampers