Rubbish article to say the least. In the essence of trying to...

Rubbish article to say the least.

In the essence of trying to balance this selective journalism, what they fail to mention is the fact that the Khouri group who have proposed a debt funding package are yet to honour their partly paid obligations to purchase equity at $0.30.

Whilst I acknowledge that the Khouri group are only one of a small number of the partly paid holders, I as a shareholder would want to see them (and the other partly paid holders for that matter) honour their legally binding obligation to the business and convert their party paid shares. That would prove to me a higher level of commitment from the group, prior to considering what a debt funding package could look like and asking the business to take another look. I don't believe any of the partly paid holders should have the ability (just because the share price is not favourable for them right now) to renegotiate their obligations to the business into another instrument, debt or equity for the benefit of essentially lowering their risk on capital at this point in time.

The partly paid holders were proposed this instrument when their $0.30c options (circa a year ago) were in the money, with the share price trading ~ $0.38 and about to expire, as at the time the business didn't require the funding and were happy to extend the $0.30 obligation out for another 12 months to the option holders.

The option holders had 3 choices;
- Let their options expire and not convert into shares, essentially letting the $0.08 in the money profit go,
- Convert their options into shares at the time, by paying the $0.30 premium and capture the $0.08 value on market,
- Pay 1c to roll their company listed options into a 29c partly paid instrument for another 12 months, knowing full well that they were changing their call option (with no legal obligation to convert), into a partly paid share, legally binding them to convert and pay the remaining $0.29 within 12 months.

Whilst we can all agree that it certainly isn't in the partly paid holder's best interest right at this point in time to pay up, no one forced them to exchange their options into partly paid instruments, essentially giving them another 12 month look at the upside (which turned out to be nothing but downside). So now with the partly paid holders failing to honour their commitment, their are forcing the company to chase them, whilst spending further capital on legal fees to recover the legally binding obligations.

Just bare that in mind when legal fees and $ in the bank are discussed moving forward.