Dated at Auckland this 17th day of May 2005.
The Common Seal of the Takeovers Panel was affixed in the presence of:
D O Jones,
Statement of reasons
This notice applies to acts or omissions occurring on or after 21 April 2005.
The Takeovers Panel (the Panel) has granted exemptions to—
Cynotech Securities Limited (CSL), Newmarket Securities Limited (NSL), and Richard Hugh Cleveland Guy and Lynda Katrina Moore (trustees of the Cleveland Trust) in respect of rule 7(d) of the Code; and
Cynotech Holdings Limited (CHL) in respect of rule 16(b).
The exemptions relate to the increase in the voting control of CSL, NSL, and the trustees of the Cleveland Trust in CHL that would result from the allotment of shares to CSL, NSL, and the trustees (in some cases because of the conversion of certain convertible notes).
The Panel considered that it was appropriate to grant exemptions to CHL, CSL, NSL, and the trustees of the Cleveland Trust because—
The Panel considered that the exemptions were consistent with the objectives of the Code because the non-associated shareholders of CHL will have an opportunity to vote on the allotment of voting securities to CSL, NSL, and the trustees of the Cleveland Trust.