Ann: Update on Convertible Notes, page-191

Thanks - you're right on the acquisitions.

So to summarise. XPED set out to raise 16.5m (9m through CN and 7.5m through SPP) and had 6.5m cash on hand. The 23m would fund expenditure for the next 2 years (14.2m in 2017 and 8.7m in 2018).

We now have 12.6m (SPP: 3.1m + CN: 3m + CoH: 6.5m) for 2017 & 2018 which could become 17m if the shortfall is filled. I.e. we would be 6m short.

So what are the options? (no pun intended)
1. Reduce expenditure, for example on acquisitions
2. Another raising later in the year to fund 2018 or raisings for specific acquisitions
3. Try to monetize existing agreements as quickly as possible (duh) to get more cash in
4. Push the SP above 5c and hope that people will exercise their options (note that if all the options are exercised, the company will receive approximately $16.9m)
5. Dare I say it? Ok. Intel Capital. But that one is very opportunistic to me.

A combination of these options is possible of course. And there could be scenarios where the company is still able to deliver on what they set out for the next 2 years. Maybe they will spend less aggressively this year, hoping for more money to come in or sentiment to improve for a raising/exercising options and go full throttle in 2018.