Chairman’s Address
AED Oil Limited Extraordinary General Meeting
25 February 2011
Ladies and Gentlemen,
Welcome to an extraordinary general meeting of AED Oil Limited.
This meeting is being held to consider certain aspects of AED’s capital structure, in particular to seek ratification of past transactions to give AED flexibility to its capital structure going forward. There are three items of business to be considered at today’s meeting, namely:
- Ratification of a previous issue of 12,000,000 shares to Nations Petroleum Company Limited in connection with the acquisition of our Rombebai and South Madura assets, to partially refresh AED’s ability to issue equity securities under the ASX Listing Rules;
- Approval of conversion rights in respect of the second, third and fourth convertible notes to be issued to La Jolla Cove Investors, Inc, so that such notes may be converted into shares; and
- Approval of the issue of the first convertible note to be issued to La Jolla Cove Investors, Inc to partially refresh AED’s ability to issue equity securities under the ASX Listing Rules.
Under ASX Listing Rule 7.1, subject to certain exceptions, AED is limited to issuing new securities of up to 15 per cent of its issued capital in any 12 month period without shareholder approval. By virtue of the transactions being considered by this meeting, AED has now almost fully utilised its 15 per cent placement capacity and will not be in the position to issue a material number further shares without shareholder approval until June of this year without the approvals being sought at this meeting.
The directors believe that it is in the best interests of AED to have the benefit of being able to raise capital without first obtaining shareholder approval so that it may retain maximum flexibility to take advantage of financing and acquisition activities as they arise.
As such the Directors of AED endorse each of the resolutions set out in the Notice of EGM.
Before we move to consider the resolutions themselves, I wish to thank you all once again for your continued support; support that will allow the Company to continue to explore and develop its assets and, hopefully, to bring positive news to the market in the short to medium term.
Download this document
