Ann: Quarterly Activities Report and Appendix 4C, page-27

One week ago at 8.6 cents you were espousing the virtues of IHL. This is what you said;

“Hardest thing to do as a holder when you are sitting on massive gains is to be patient and keep backing management to keep delivering. Still a speculative stock but there will be plenty of news over the next 3 months futher enhancing the FA. Big thing for me ...is management have so far delivered.”

Three weeks ago at 8.5 cents you said,

“Nice little back test for supply...suck and soak up some weak retail and flush out off screen sellers. Works every time. Reversal from here increases the likelihood of a genuine breakout looming.”

I’m guessing since then you’ve sold and now seek validation in your decision by s**t canning the company.

Let me address your thoughts.

(1.) Yes, $5m has been raised to Peloton and I can assure you that a significant period of DD preceded this investment. I’d suggest the intellectual horsepower you have devoted to this tantrum is probably unlikely to ruffle the feathers of people who understand the business opportunity.

(2.) Yes, the company completed two placements in the last quarter. You neglected to mention the prices. The first was 2 cents then 3.8 cents (90% price increase from prior raise) and now at 7.8 cents (105% price increase). IMO the company has done a terrific job and shareholders have been rewarded every time. I’ve no doubt this raise will bear similar fruit.

(3.) Yes, there have been lots of agreements announced and you can judge the impact of these in time but it’s not fair to say “bugger all follow through”. I don’t believe you have any comprehension about the time and skill required to achieve what has been announced by the company so far. No doubt it’s easier from your lounge chair than in the boardroom.

(4.) Yes, revenue has decreased and expenditure increased. The company is chasing global IP development and success will lead to multiples of current price. This is why the HNW and Institutions of Peloton invested. They don’t care about selling mouth guards and neither do I. You’ve missed the entire pivot which has created all the value. Why are people focused on small scale revenues, it’s totally irrelevant at the moment.

(5.) Credit Suisse selling, funniest comment I’ve read. They’ve traded a few shares around in the last month or two and I’ve seen the numbers but the major shareholders are not selling. You do understand that Credit Suisse have retail clients, it’s probably not Urs Rohner taking a position from Zurich.

There’s lots of news ahead, clinical trials starting soon, CBD oils, patent filing and financially the company is a fantastic position.