Forum Archive Index - February 2000

[frank <frank.fernandez@xtra.co.nz>]

Tony,
Don't despair. It is true that many AQL investors have been
disillusioned with the stock's lack of movement for a long while that
they have sold down and moved on to other faster moving stocks...but
then there has also never been any shortage of buyers for the AQL shares
that have come on the market in recent times....and this is why!

The company is expected to officially announce soon that it will
relinquish the "Aquaria 21" name to Bliss Corporation who will, subject
to shareholder approval) change its name to Aquaria 21 International
Limited. (In Australia, shareholder approval is required for a name
change but in New Zealand, it is not)

And inkeeping with its previous stance, AQL is expected to publicly
maintain that no business has yet been identified as a potential
acquisition, no future direction has yet been decided - and because of
all of this, no name has been yet been decided for the AQL shell. 
However, the company's directors will be concentrating on investigating
"alternative business opportunities". 

It is also my understanding that AQL is hoping to call a shareholders
meeting prior to the Bliss meeting (on 10 March) but this will be
dependent on the NZ Stock Exchange's clearance of the meeting documents
and reports to be distributed to shareholders.  These need to be sent to
shareholders 10 days prior to the meeting, and it is understood that the
NZSE is currently reviewing the draft documents.

Stuart Allen wrote to me last week asking who were entitled to attend
the AQL shareholders meeting.  All shareholders are entitled to attend
and vote at the meeting, Stuart. I am told that notices of the AQL
meeting will be sent to all shareholders and the holders of options and
convertible notes. The option and convertible note holders are entitled
to attend the meeting but cannot vote.  I understand too that
shareholders will be given the opportunity to ask AQL directors
questions about each resolution prior to it being put to the vote. The
information sent to shareholders prior to the meeting will contain
information about each resolution.

Reflecting on the new developments, I would say it is very positive news
for investors who have stayed with the stock. After a long wait and many
disappointments, the cloud is starting to lift on what is happening with
AQL. In my view, there are only two possibilities for AQL:

1.  Retain its 32% stakeholding in the new ASX-listed Aquaria 21
International Ltd (and get a much sought-after backdoor listing on the
NZSE) while carving out a new direction through acquisition, merger or
reverse takeover for the former AQL shell on the NZSE. This is possible
as AQL does not need to pay off its $10 million funding facility for
another two years - and even this can be extended on new terms.
And even without selling off its 32% stakeholding, AQL will have enough
funds (from its current operations; from the on-selling of the 19.9%
holding in Bliss to Oceanis late last year; from the private placement
of the 21 million shares recently placed; from the proposed sale of the
Seoul Aquarium project; and from possible future placements of shares on
the market) to finance a new direction (and even more so if the new
direction involves merger with another company).

2.      Sell off all of its stakeholdings in the new ASX-listed Aquaria
21 International Ltd and concentrate solely on a new course through
acquisition, merger or reverse takeover for the AQL shell.

Whatever the future direction of the AQL shell will be, I have no doubt
that the decision concerning its future path has already been made. It
is now just a question of "commercial timing" before a public
announcement is made.

So in reply to your question Tony, No I definitely don't think you have
bought a pup! 

Cheers,

Frank Fernandez

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