Ann: Proposed Capital Reduction and Return, page-38

At the company's A.G.M. held in November last year a resolution was passed to "issue shares to directors and employees upon certain performance conditions being reached.  These included "undertaking a significant acquisition or transaction", "making a significant new discovery", "other actions increasing the company's potential"  etc. etc.

I'm wondering, that with the 4 cent capital return to shareholders and with the share price presumably reducing to 11 cents (currently the 15 cents less the 4 cents return of capital)  how this plays out with an issue of performance rights shares to company members.  With the positive presentations by management and a similar positive tone by posters here at H.C. it may well be that the criteria of a significant discovery etc. is met.

Share s will then issue that are worth 26% less (4 cents off the 15 cents) than they might otherwise have been had not the capital return taken place.  Or am I missing something here?

MM