Thank you for all the responses which are much appreciated. I...

Thank you for all the responses which are much appreciated.

I did go back to the notice of meeting - although it seems to me that it is unclear in that it doesn't appear to mention any value of employee incentive shares to be issues. The figure of a $30.8m pool only seems to appear in the presentation.

In addition, although the CEO performance rights are shown as being received over 3 years in the presentation, the notice of meeting seems to imply that they are all based on the one hurdle in 2012 and that they would then be issued by Oct 2012. It is only the presentation that seems to suggest they vest over 3 years.

Therefore, is the $30.8m pool also determined solely on the 2012 performance, but vesting over 3 years? And does the $30.8m also include the amount of 40% of the Arccon 2012 profit that is to be paid to Robert Wilde in shares also? (At least I take it from the examples that the profit is divided by 2.4 and not multiplied as the note on page 14 of the notice of meeting .pdf suggests.)

Based on my current reading of all of this and taking into account the forecast profit at agm (and presuming the share price or shares on issue can be nudged to give a market cap of $60m at 30 June), plus presuming any current buyers would want the 20cps options to be exercisable... and therefore using 20cps as the benchmark price for issue of shares (including for the Arccon acquisition earn-out), then I calculate the approximate commitment to issue shares at this point to be equivalent to 545m shares on issue.

This can only be an approximate number - as the share price goes up, the number of shares to be issued will fall and vice versa - i.e. the share price could spiral in one direction or the other on this basis. But I think, given the magnitude of commitments, it is important to have some figure in mind to determine what a "fully diluted" result might look like.

Comments welcome.