Ann: $2.5 Million Convertible Notes, page-11

Gday Syd,
had a look at it and this is my take:

-the maximum number to be issued (44,809,559 ex oppies) includes the full take up of $2.5m at an issue price of about 0.05579 (again not taking into account the oppies).
If the outstanding $1m doesn't get done then the issued amount will reduce.

- I agree the wording about the ranking is unusual (but then some of their wording in announcements have been a bit unusual) but I have seen some different wording on convertible instruments in the past. My take is it may be just stating the obvious as any other debt incurred would also rank unsecured but may have legal remedies( romalpa clause for example) that then give seniority over this note.


Given this raise is at a premium to the price of the past 6 months or so I don't think its a bad outcome as a straight equity raising would have had to be done at a discount to market to put it away in this climate.

cheers