Ann: Appendix 3Y - G Rezos, page-29

One theory is that Nic and Gavin have realised the chemistry is too expensive to produce and this business is over valued by the market based on the future expectations they have been trying to perpetuate.

Possibly, Nic and Gavin are planning to exit their positions in the NASDAQ "listing", and know that a tanking share price on the ASX will jeopardize their exit strategy. Therefore they buy on marking to try to create support, knowing they can always sell on the NASDAQ anyway.

This theory is also supported by the ridiculous remuneration packages they have been on. They know the business will never justify these packages, so rather then wait for success before cleaning out the trough, they are licking the spare cash scraps they have accumulated by continuous dilution and discounted raisings and debt packages.