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--secures underwriting and new director

  1. alecfra

    3,446 Posts.
    The German/Austraian are coming back in--they love this story.

    Income from Mining,port facilities plus revenue from Spaceport,refugee settlement and HUGE compensation for loss of phosphate incurred.

    For those that are unfamilar with Govt resumption of land,in this case the Govt has to pay the company the value of the phosphate contained .--its a bit like getting all your revenue in one year without mining.

    Asset Backed Holdings Limited is pleased to announce that it has
    entered into Underwriting Agreements effective today for the
    underwriting of the exercise of the balance of approximately 29
    million Options in the Company exercisable at 35 cents each on or
    before 8 August 2002. The Underwriting has been completed pursuant to
    separate Underwriting Agreements with Somerset Financial Group Inc
    of 349 Wall Street, Princeton New Jersey in the United States as to a
    maximum of 15 million of the Options (ie, approximately 50% of the
    Options) and with KLM Equity AG Wertpapierhandelsbank Hafenstrasse 54
    Frankfurt Germany as to the balance of the Options. Any shortfall in
    the Options conversion will be shared equally between the two
    Underwriters. In addition, Mr Ludger Kohmascher has today joined the
    Board of Directors of Asset Backed Holdings Limited. Mr Kohmascher of
    Osnabruck Germany, is also a director of Grange Resources NL and
    ECAT Limited.

    The fee payable for the Underwriting is 5% of the exercise for the
    whole of the approximate 29 million unexercised Options, being
    approximately $510,000.

    The Underwriting Agreements while separate, are dependent on the
    performance of each other and the Underwriting Agreement with KLM
    Equity AG, is fully sub-underwritten, and is conditional upon full
    performance by all Sub-Underwriters.

    Both Underwriting Agreements contain Termination clauses normally
    associated with Underwriting Agreements including:

    1. fall in the Australian Indices of 10% of more;

    2. fall in the Euro to below $1.40 for 1 Euro;

    3. change in the ASIC Class Orders preventing the seller of shortfall
    shares to sell shortfall shares without a disclosure document;

    4. misinterpretation of information and warranties by the Company;

    5. default by the Company under the Agreements;

    6. announcement of major changes to monetary, taxation, exchange or
    fiscal policy by the Australian Government;

    7. fundamental change in Australian economic or political conditions;

    8. adverse trading conditions of the Company; and

    9. outbreak of hostilities.

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