"....The Panel considered that the entitlement offer and the underwriting and sub- underwriting arrangements did not comprise normal commercial arrangements, but effectively ensured a conversion of Bizzell Nominees’ loan to Laneway into equity without shareholder approval and was likely to have a substantial control effect on Laneway. The Panel also considered that there appeared to be information deficiencies in Laneway’s prospectus. The Panel was minded to make a declaration of unacceptable circumstances in relation to the affairs of Laneway and orders including that the entitlement offer not proceed unless any conversion of the debt owed to Mr Bizzell and to entities controlled by him was approved by Laneway shareholders under item 7 of s611 of the Corporations Act 2001 (Cth)...."
LNY announcement 17 July 2103:
"Since 2006, Laneway Resources has been almost entirely dependent on funds advanced to it by a loan facility with Bizzell Nominees Pty Ltd (an entity associated with the Company’s Chairman)(Bizzell Nominees Loan Facility)."
"The Company will at the completion of the Entitlement Offer, seek Shareholder approval to convert the outstanding balance of the Bizzell Nominees Loan Facility to Shares at $0.018 per share (a 20% premium to the Offer Price). At this point, subject to the take-up from Shareholders under the Entitlement Offer and shareholder approval, Laneway Resources will be debt free and funded to pursue exploration activities and meet working capital requirements."
Notice of EGM 15 Aug 2013:
"1. Approval for the conversion of the Bizzell Nominees Loan Facility into Shares"
“That in accordance with item 7 of section 611 and Chapter 2E of the Corporations Act, ASX Listing Rule 10.11 and for all other purposes, approval is given for the Company to issue to Bizzell Nominees up to a maximum 1,094,232,427 Shares at an issue price of $0.018 per Share in full and final repayment and settlement of the full outstanding balance of the Bizzell Nominees Loan Facility on the terms and conditions described in the Explanatory Statement.”
"2. Approval for the issue of Shares in lieu of Directors Fees to Richard Anthon"
“That in accordance with Chapter 2E of the Corporations Act 2001 and ASX Listing Rule 10.11 and for all other purposes, the issue to Richard Anthon of 10,166,667 Shares in lieu of unpaid Director’s Fees as set out in the Explanatory Statement, at an issue price of $0.015, be approved.”
*note, emphasis added by me
LNY Price at posting:
0.3¢ Sentiment: Hold Disclosure: Held
