Ann: CAPITAL RAISING TRANSACTION DOCUMENTS EXECUT, page-5

re: Ann: CAPITAL RAISING TRANSACTION DOCUMENT... Thanks for the replies, decrisper and finch. This one is going to be a great one to discuss in the future.

decrisper, yes, ACE will have majority ownership, but they will have paid 3.5c for $35m, which will be 3.5X the retail rights price. I don't have much issue with majority ownership of companies. They will certainly be "cornerstone", so their shares won't be sold off- kind of better than SI's.

This raising will give so much more wriggle room for FFF. The highly acquisitive stage- with Wales deep pockets- was probably over the top for FFF, BUT it is now being resolved, so the companies/assets that it bought, can now reap the benefits. In that way, Finch, it was good that the company could grow, but companies can get very trapped by a lender who just says, yes, but everything, and then a company is caught in a debt-trap. When the lender is a Director, they have too much influence, imo. An arms-length lender, eg CBA, takes a cautious approach, whereas there was an enormously cavalier approach taken with FFF, so much so that if this equity deal had notcome in, FFF would have breached bank covenants. So, I see ACE as a saviour, really (even at a cost of majority ownership). An equity injection is always valued, whereas debt will smash a share price.

finch, I think the market will wait for the renounceable offer, and not too much will happen until then re share price now. Had it been a placement @ 3.5c, and that was it, the share price would go bananas, but when the market can buy shares for 1c later (perhaps by buying rights to do so), then everyone waits. Great stuff all up, though.