The best (and probably only) argument for approving the Ariadne...

The best (and probably only) argument for approving the Ariadne transaction is that they stood by the Company in its hour of need and all shareholders got the opportunity to buy on pretty much the same terms. This is reasonably compelling to me.

The other arguments that they have put up in the report to try and justify approving the transaction are pretty ordinary and only muddy the waters about the value of the company. For example:
"Benefits of redeeming early of $1.9m" - nothing to do with approving
"Dont have the cash to redeem" - yet forecasts $6.3m cashflow by 31 December - does all the cash hit on New Years Eve? Everyone else is going to convert anyway
"Need a big brother if we need a capital raising" - Excuse me - arent they suppose to be making a truckload of cash which they will shovel out to shareholders?
"Leaves $2m in the company" - any proposal to effectively buy back 10% of the enlarged capital for 3c a share would be passed in a blink in the eye!

I get and agree with the fairness argument and I suppose they had to put other arguments up but I dont think they are actually helpful in pumping up the share price.

I understand them not trying to put a value on the other stuff because it is pretty difficult and you either accept the cashflow valuation or you dont. It is understandable that they have been conservative in their valuations.

I think it would have also been useful if they actually spelled out their dividend distribution policy going forward. Are they going to pay out the cashflow of the next 2 years to shareholders or is it going to be reinvested in all this other stuff that is of vague value.

This meeting and the actual redemption / conversion clears the way for paying a dividend.

Once they start declaring dividends the share price will move.