B1 Funding Challenges for SME’s

Alistair Jaque Nic Andrews

2011ANNU

AL

CONFERENCE

28TH ANNUAL

CONFERENCE

2011

CSA National conference 2011Funding Challenges For SMEs

Nic Andrews CEO, Magontec Limited Alistair Jaque Partner, Swaab Attorneys

5 December 2011

The magnesium industry and MGL

Mg alloys

Al alloys

Steel

Ti

Fe

Other

Automotive

‘3C’

Powertool

China

ApplicationIndustrySource

Fundraising rules

Types of funding Loan facility Subscription for shares Convertible loan note Redeemable preference shares

Fundraising rules

Rules for private companiesRules for public companiesRestrictions on advertising investment

opportunities

Funding The Magontec acquisition

Australian, German, Romanian, Cypriot and Chinese jurisdictions

Dealing with a much larger listed seller AML share price Acquisition funding Working capital funding Funding costs and expenses Shareholder approvals

funding the Magontec acquisition

Listing Rule 7.1 - issue of 15% of AML shares Chapter 6D - disclosure issues Convertible loan note - vendor finance for part of

purchase price Section 606 – ensure takeover provisions not triggered Listing Rule 11.1 - change in nature or scale of business Share Purchase Plan - to raise additional working capital Loan agreement - with bank for working capital funding EGM - 16,000 shareholders

Funding challenges for smes

Valve Cover

BeltDriveCover

OilHousing

Porsche Panamera V8 engine

CSA National conference 2011Funding Challenges For SMEs

Nic Andrews CEO, Magontec Limited Alistair Jaque Partner, Swaab Attorneys

5 December 2011