Q1 - With the development of the international airport at Badgerys Creek, Air Freight Ltd commences its operations in Badgerys Creek by making a public offer to its shares. The directors are from Japan and its prospectus notes the following.

• The shares are to be issued at $4.00 per share
• The shares are to be paid in 3 installments.
  • First payment to be made in the application of $1.60
  • Second amount of $1.60 will be due within one month of allotment
  • Third amount of $0.80 will be due within the first and final call

Air freight will seek to issue 10 million shares. The closing date for applications is 31 August 2022. By the closing date, applications have been received for 14 million shares. To deal with the oversubscription, air freight ltd has decided to issue shares to all subscribers on a pro-rata basis. All amounts due on allotment are paid by the due date. The first and final call for $0.80 is made on 30 November 2022, with the amounts being due by 31 December 2022. Holders of 2 million shares fail to pay the amount due on the call by the due date, and on 15 January 2023, these holders have their shares forfeited. The forfeited shares are auctioned on 15 February 2023. An amount of $2.80 per share is received. The cost of holding the auction is $5,000. The shares are sold as fully paid.

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