resourced - the agreement is OK - in principle.
What has been forgotten - inadvertendly (in QUT's language), of course - is the adjustment of the Section 11.3 (f) of the Prospectus (dated March 3, 2004) that says, and I quote, (f) the Shares have been consistently traded for a minimum of 6 month on ASX at a weighted average value of at least twice the Offer Price.
Please note that the Offer Price was $0.50 and the total number shares issued 13,455,000.
The Directors, who supposedly have to act in the best interest of the company, have failed to recognize the importance of this clause. It would have been in the best interests of the company to have this weighted average value adjusted at each and every CR.
As of today, there are 302,878,835 Shares on issue.
Divide that by the number of shares issued at Offer of 13,455,000 and you get a value of 22.5105. That's basically the dilution of the shares.
The weighted average value should be, as of today, 2 times $0.5 / 22.5105 = $0.044 and therefore well within reach allowing for a transfer of all Intellectual Property from QUT to TIS.
The other subsection 11.3 (a) to (e) do not pose any problem at all (to the best of my limited knowledge).
NB: To our directors's excuse I must say that none of our esteemed top twenty's have noticed too.
TIS Price at posting:
6.6¢ Sentiment: Hold Disclosure: Held
