Ann: MD Deemed Loan Repaid in Full, page-36

Happy to be corrected, but as I see it, the company just made $522k on top of the $505k that it never actually spent – CG never actually received any funds. The company actually dispensed no funds at all to CG and even the terms of the 'loan' suggest that there was never any real intention of the so-called 'loan' being repayed*. The company in fact paid itself to convert his options. In other words, the company 'received' monies from options that it converted itself. So in effect, not a single cent was actually spent to convert his options into fully paid NSL. That is, $505k went from one accounting column over to the next, from Peter to Paul. This is clearly a share deal for the top 10, imo, and perfectly above board. The top 10 have picked up millions of NSL at a discount, imo, and in the process provided the company directly, not CG, with $522k. Interestingly, CG actually owns more NSL today than he did before he ‘converted’. It seems like a win-win all round. Very bullish.

All imo.

* The parties acknowledge and agree that in the event the 5 day volume weighted average price of the Company’s fully paid ordinary shares that are quoted on the Australia  Securities  Exchange  falls  below  the  exercise  price  of  the  Options  the parties may mutually agree to forgive the Loan and release the Borrower from the requirement to repay the outstanding monies.