re: Ann: Appointment of Kane Marshall as CEO ... I don't know if...

re: Ann: Appointment of Kane Marshall as CEO ... I don't know if it will happen but when the deal was struck it was certainly a possibility that occurred to myself and others.

A reverse takeover is not uncommon, what it involves is a smaller company "taking over" a larger company in a full scrip takeover.

EGO shareholders would end up swapping their EGO shares for KEY shares however given the respective sizes of the two companies EGO shareholders would end up with a greater proportion of KEY shares.

Eg. existing KEY shareholders wind up with 25% of the shares in the enlarged company and EGO shareholders get the other 75% (ignore the actual percentages used, I am only using these as an example).

As KEY shareholders would be diluted there's a greater risk that they would vote the deal down however the nearly 20% stake that EGO has taken in KEY as part of the Canning Basin asset acquisition will make it harder for the remaining shareholders to vote it down.

The reverse takeover scenario is exactly what was proposed with the Zeta deal. Zeta effectively would have taken over KEY even though technically the proposal was for us to acquire Zeta. Zeta shareholders would've had the majority of KEY shares and their board and management would have taken over the running of KEY plus Zeta's existing assets.

Craig Marshall has already started down this path by taking over the chairmanship of KEY, then moving the registered address to the same office as EGO and now he's installed his son as CEO. A little bit unorthodox in my experience with reverse takeovers although I have no experience with the mining sector in these scenarios so possibly not that uncommon.