Ann: Letter to Shareholders - Upcoming EGM, page-226

Having looked ( briefly at GPB) I found it surprising that they would be involved. Seemed much more likely to invest in things they can control. I was very surprised that they would invest here but they do have a debt arm. I think its really something that you should consider when investing in companies. Very often its the debt agreements that actually drive control over the company's assets.

Bloomberg's snapshot of them in part: "Within Debt strategies, it prefers to invest in secured loans to small and medium-sized North American businesses. It considers investments in companies based in the United States. The firm seeks to invest in companies that intend to go public. It seeks to invest in companies where the management teams provide first risk capital or provide personal guarantees. The firm prefers to invest in equity secured by a first lien on the assets of the portfolio company. The firm seeks to hold a majority of the seats on the portfolio company’s Board of Directors. GPB Capital Holdings, LLC was founded in 2013 and is based in New York, New York."

Nowhere in that statement could I plug AJX. I then thought about it as I have been looking for an entry point into the company again. I, as others point out as well, am unhappy with trust and this agreement they are seeking to ratify is even part of my unhappiness.

Whilst everyone is focusing on the conversion rights I think that more concerning is the fact that they now have everything locked up as part of the debt security. All the assets - I presume the IP etc seems to be hocked as part of this deal.

Generally, that makes me uncomfortable as my asset can be taken away. So for roughly A$13 million, they have given away the farm and the interest rate is over 13%. who remembers this is now a bankable business statement... Conversion rights etc - don't look to 10% dilution look to who now has the balance of power...

Today I am taking it off my watch list - some of the punters here will probably be glad another dissenting voice departs...

Personally too much risk is developing. This company has sold its ability to determine its future for what seems a very small price. It raised $15 million not so long ago I would have preferred a deeper raise and no debt- the future sales are too uncertain to have external debt in my opinion and this loan looks opportunistic and predatory to me.

Been here before a few times and in most ( NOT ALL) cases I have ended up losing. Personally, I am not happy that this all comes out now over 6 months after they raised the debt so you are in it...