WEC – White Energy Company


Hi Noirua and other SACL shareholders. I notice in the 19th April pdf something has slipped in, in paras ii and iii which wasn’t in the posted document of the same date.
It is in reference to the extra shares to be issued if drilling upgrades reserves above 500mt and up to 1.500 mt. I understand the meaning of the sliding scale, I think. It means if the reserves turn out to be 1,250 mt, we are entitled to the full tranche under ii and half the tranche under iii in new shares.

But then they come up with a White share price of $2.80 in ii and $3.10 in iii. No mention of this in the posted document.What does it mean? It makes no sense to me. At first I thought they were asking us to subscribe to these additional shares at these prices, which of course is not the case. They are bonus Issues based on the additional reserves beyond 500mt.

If it has any meaning or alters the terms of the posted document, they should have followed it up with an amendment. I realise the official Offer Document is the binding agreement, but it may not arrive for a month, and any Shareholder may not wish to consider the new terms if these $2.80 and $3.10 figures materially affect the offer.

Noirua, I must contest your assertion that the $2.50 Rights Issue, will only be open to Australian and NZ Residents. The pdf document states quite clearly it is open to all shareholders.

If you were correct, and as you suggest, they might be happy for people like me to subscribe but would then sell my shares, hopefully at a premium in the Market, then no doubt the Offer Document will make this clear. I can then immediately buy my sold entitlement back from the Market, hopefully at the same price, so what’s the point?

It would be a pretty shabby way to treat investors who had put up their money.Suppose the share price slips back to $2.50 in the meantime?
That will remove all shareholders who only intended to subscribe for the premium established in the market. QED —WEC will not get the money they had hoped for.

There are too many large overseas shareholders I would imagine to treat in this manner. Maybe even Peabody is building a stake, before they are entitled to subscribe to 15% of the equity?

I have written to the ASX on this point referring to the fact there is no mention of it in the Posted Document, and no provisos or “subject to” wordings in the Document.. It is stated quite clearly there and in the pdf, that all Shareholders are included in all the Offer Terms.



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