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TZ LIMITED Capital/Financing Update 2010

Nov 9, 2010

65975_rns_2010-11-09_36b1cfac-8f15-4302-8d93-dddda458c82a.pdf

Capital/Financing Update

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TZ Limited ABN 26 073 979 272

==> picture [134 x 55] intentionally omitted <==

10 November 2010

Lodged by ASX Online

The Manager Company Announcements Office ASX Ltd. Level 4, 20 Bridge Street Sydney, NSW 2000

Dear Sir/Madam

RENOUNCEABLE RIGHTS ISSUE – APPENDIX 3B

Please find attached an Appendix 3B in respect of TZ Limited's proposed renounceable rights issue.

Yours faithfully, TZ LIMITED

==> picture [109 x 67] intentionally omitted <==

Kenneth Ting Secretary and Executive Director

Chicago (Operational Headquarters) 520 West Erie Street, Suite 100 Chicago, IL 60654 United States

Sydney (Registered Office) Level 11, 1 Chifley Square Sydney, NSW 2000 Australia

ASX: TZL Web: www.tz.net Email: [email protected]

Rule
2.7,
3.10.3,
3.10.4,
3.10.5

**Appendix

3B**

**New

issue
announcement, application
for
quotation
of
additional
securities and
agreement**

Information
or
documents
not
available
now
must
be
given
to
ASX
as
soon
as
available.
Information
and documents
given
to
ASX
become
ASX’s
property
and
may
be
made
public.

Introduced
1/7/96.
Origin:
Appendix
5.
Amended
1/7/98,
1/9/99,
1/7/2000,
30/9/2001,
11/3/2002,
1/1/2003,
24/10/2005.

Name
of
entity

TZ
LIMITED

ABN 26
073
979
272

We
(the
entity)
give
ASX
the
following
information.

**Part

1

All
issues**

You
must
complete
the
relevant
sections
(attach
sheets
if
there
is
not
enough
space).

1
+Class of+securities issued or to
be issued



2
Number of+securities issued or to
be issued (if known) or maximum
number which may be issued



3
Principal terms of the+securities
(eg, if options, exercise price and
expiry
date;
if
partly
paid
+securities,
the
amount
outstanding and due dates for
payment;
if
+convertible
securities, the conversion price
and dates for conversion)

Ordinary Shares
28,068,306 (as it is expected that the
8,091,446 placement shares announced to be
issued by the Company on 10 November
2010 will be issued prior to the record date
for the rights issue)

Same terms as existing ordinary shares.
4
Do the+securities rank equally in
all respects from the date of
allotment with an existing+class
of quoted+securities?

If the additional securities do not
rank equally, please state:
• the date from which they do
• the extent to which they
participate
for
the
next
dividend, (in the case of a trust,
distribution)
or
interest
payment
• the extent to which they do not
rank equally, other than in
relation to the next dividend,
distribution
or
interest
payment


5
Issue price or consideration



6
Purpose of the issue
(If issued as consideration for the
acquisition
of
assets,
clearly
identify those assets)








7
Dates of entering+securities into
uncertificated
holdings
or
despatch of certificates






8
Number
and
+class
of
all
+securities
quoted
on
ASX
(including
the
securities
in
clause 2 if applicable)






9
Number
and
+class
of
all
+securities not quoted on ASX
(including
the
securities
in
clause 2 if applicable)

Yes




Not applicable
Yes




Not applicable
35 cents per new share
To raise additional working capital to enable
the Company to meet stock requirements
and to hire additional staff.

According to the current rights issue
timetable expected to be 21 December
2010
Number +Class

104,181,779

Ordinary fully paid
shares
Number +Class
200,000
200,000
Director options
exercisable at $3.75
Director options
exercisable at $5.00
  • See
    chapter
    19
    for
    defined
    terms.

Appendix
3B
Page
2

1/1/2003




















600,000
300,000
300,000
100,000
195,000
149,000
3,000,000

13,714
Director options
exercisable at $3.75

CEO options
exercisable at $3.00

CEO options
exercisable at $3.75

Options exercisable
at $3.75 and expiring
on 18 January 2011

Options exercisable
at $3.75 and expiring
on 19 January 2011

Options exercisable
at $3.00 and expiring
on 20 January 2011

CB Options
exercisable at $4.00
and expiring on
19 February 2013

Convertible notes at
an issue price of
$1,000 per
convertible note




10
Dividend policy (in the case of a
trust, distribution policy) on the
increased capital (interests)
1,232,500



150,000



1,400,000




1,750,000




1,750,000




1,750,000
Convertible Notes at
an issue price of
$1.00 per convertible
note

Options
exercisable
at $1.00 expiring on
29 March 2011.

Rights
under
the
Company’s Director
and Executive Equity
Plan

Directors
options
exercisable at $1.00
and expiring on 30
June 2016.

Directors
options
exercisable at $2.00
and expiring on 30
June 2017.

Directors
options
exercisable at $3.00
and expiring on 30
June 2018.
Same terms as existing ordinary shares.

**Part

2

Bonus
issue
or
pro
rata
issue**

11
Is
security
holder
approval
required?



12
Is the issue renounceable or non-
renounceable?


13
Ratio in which the+securities will
be offered


14
+Class of+securities to which the
offer relates


15
+Record
date
to
determine
entitlements

No
Renounceable
One new share for every three shares held
Ordinary
23 November 2010

  • See
    chapter
    19
    for
    defined
    terms.

Appendix
3B
Page
4

1/1/2003

16
Will holdings on different registers
(or subregisters) be aggregated for
calculating entitlements?


17
Policy for deciding entitlements in
relation to fractions



18
Names of countries in which the
entity has+security holders who
will
not
be
sent
new
issue
documents
Note: Security holders must be told how their
entitlements are to be dealt with.
Cross reference: rule 7.7.


19
Closing
date
for
receipt
of
acceptances or renunciations




20
Names of any underwriters



21
Amount of any underwriting fee or
commission


22
Names of any brokers to the issue



23
Fee or commission payable to the
broker to the issue


24
Amount
of
any
handling
fee
payable to brokers who lodge
acceptances or renunciations on
behalf of+security holders


25
If the issue is contingent on
+security holders’ approval, the
date of the meeting


26
Date entitlement and acceptance
form and prospectus or Product
Disclosure Statement will be sent
to persons entitled


27
If the entity has issued options, and
the terms entitle option holders to
participate on exercise, the date on
which notices will be sent to option
holders


28
Date rights trading will begin (if
applicable)
Yes
Fractional entitlements will be rounded up
to the nearest whole number.
All countries other than Australia and New
Zealand. An offer will not be made to the
holders of ordinary shares with registered
addresses in any country other than
Australia
or
New
Zealand
and
their
entitlements may be sold by a nominee and,
if so, any net proceeds will be sent to those
holders.
13 December 2010
Patersons Securities Limited
5% of underwritten amount.
Patersons Securities Limited
Nil
N/A
N/A
29 November 2010
15 November 2010
17 November 2010
29
Date rights trading will end (if
applicable)




30
How do+security holders sell their
entitlements_in full_through a
broker?


31
How do+security holders sell_part_
of their entitlements through a
broker and accept for the balance?


32
How do+security holders dispose
of their entitlements (except by
sale through a broker)?


33
+Despatch date

1 December 2010
By completing and sending entitlement and
acceptance form to broker.
By completing and sending entitlement and
acceptance form to broker.
By
sending
a
completed
standard
renunciation form to the Company's share
registry. The renunciation form must be
signed bythe seller and the buyer.
21 December 2010

**Part

3

Quotation
of
securities**

You
need
only
complete
this
section
if
you
are
applying
for
quotation
of
securities

34 Type
of
securities ( tick
one
) (a) Securities
described
in
Part
1 (b) All
other
securities

Example:
restricted
securities
at
the
end
of
the
escrowed
period,
partly
paid
securities
that
become
fully
paid, employee
incentive
share
securities
when
restriction
ends,
securities
issued
on
expiry
or
conversion
of
convertible securities

**Entities

that
have
ticked
box
34(a)**

**Additional

securities
forming
a
new
class
of
securities**

Tick
to
indicate
you
are
providing
the
information
or documents

35 If
the[+] securities
are[+] equity
securities,
the
names
of
the
20
largest
holders
of
the additional[+] securities,
and
the
number
and
percentage
of
additional[+] securities held
by
those
holders

36 If
the[+] securities
are[+] equity
securities,
a
distribution
schedule
of
the
additional +securities
setting
out
the
number
of
holders
in
the
categories 1
-­‐
1,000 1,001
-­‐
5,000

  • See
    chapter
    19
    for
    defined
    terms.

Appendix
3B
Page
6

1/1/2003

5,001
-­‐
10,000 10,001
-­‐
100,000 100,001
and
over 37 A
copy
of
any
trust
deed
for
the
additional[+] securities

**Entities

that
have
ticked
box
34(b)**

38 Number
of
securities
for
which N/A +quotation
is
sought 39 Class
of +securities
for
which N/A quotation
is
sought 40 Do
the[+] securities
rank
equally
in N/A all
respects
from
the
date
of allotment
with
an
existing[+] class of
quoted[+] securities? If
the
additional
securities
do
not rank
equally,
please
state: • the
date
from
which
they
do • the
extent
to
which
they participate for the next dividend,
(in
the
case
of
a
trust, distribution) or interest payment • the
extent
to
which
they
do
not rank
equally,
other
than
in relation
to
the
next
dividend, distribution or interest payment 41 Reason
for
request
for
quotation N/A now Example:
In
the
case
of
restricted
securities,
end of
restriction
period (if
issued
upon
conversion
of another
security,
clearly
identify that
other
security) Number +Class 42 Number and +class of all N/A +securities quoted on ASX ( including the
securities
in
clause 38)

**Quotation

agreement**

  • 1 +Quotation
    of
    our
    additional +securities
    is
    in
    ASX’s
    absolute
    discretion.

ASX may
quote
the[+] securities
on
any
conditions
it
decides.

  • 2 We
    warrant
    the
    following
    to
    ASX.

  • The
    issue
    of
    the[+] securities
    to
    be
    quoted
    complies
    with
    the
    law
    and
    is not
    for
    an
    illegal
    purpose.

  • There
    is
    no
    reason
    why
    those[+] securities
    should
    not
    be
    granted + quotation.

  • An
    offer
    of
    the[+] securities
    for
    sale
    within
    12
    months
    after
    their
    issue will
    not
    require
    disclosure
    under
    section
    707(3)
    or
    section
    1012C(6)
    of the
    Corporations
    Act.

    • Note:
      An
      entity
      may
      need
      to
      obtain
      appropriate
      warranties
      from
      subscribers
      for
      the
      securities
      in
      order
      to
      be
      able to
      give
      this
      warranty
  • Section
    724
    or
    section
    1016E
    of
    the
    Corporations
    Act
    does
    not
    apply
    to any
    applications
    received
    by
    us
    in
    relation
    to
    any[+] securities
    to
    be quoted
    and
    that
    no-­‐one
    has
    any
    right
    to
    return
    any[+] securities
    to
    be quoted
    under
    sections
    737,
    738
    or
    1016F
    of
    the
    Corporations
    Act
    at
    the time
    that
    we
    request
    that
    the[+] securities
    be
    quoted.

  • If
    we
    are
    a
    trust,
    we
    warrant
    that
    no
    person
    has
    the
    right
    to
    return
    the +securities
    to
    be
    quoted
    under
    section
    1019B
    of
    the
    Corporations
    Act
    at the
    time
    that
    we
    request
    that
    the[+] securities
    be
    quoted.

  • 3 We
    will
    indemnify
    ASX
    to
    the
    fullest
    extent
    permitted
    by
    law
    in
    respect
    of
    any claim,
    action
    or
    expense
    arising
    from
    or
    connected
    with
    any
    breach
    of
    the warranties
    in
    this
    agreement.

  • 4 We
    give
    ASX
    the
    information
    and
    documents
    required
    by
    this
    form.

If
any information
or
document
not
available
now,
will
give
it
to
ASX
before +quotation
of
the
+securities
begins.
We
acknowledge
that
ASX
is
relying
on
the information
and
documents.

We
warrant
that
they
are
(will
be)
true
and complete.

Sign
here: ............................................................

Date: Director/Company
secretary

Print
name:

==
==
==
==
==

  • See
    chapter
    19
    for
    defined
    terms. Appendix
    3B
    Page
    8

1/1/2003