Ann: Completion of Rights Issue, page-6

I have been an investor in CL8 for many years.

The company's initial concept was to go into an untapped market for second hand cars, lease them out and make a profit for the owner of the vehicle and themselves.

This concept was extended to cover caravans, tools and other odds and ends.

The concept was the brain child of those behind Willoughby Capital PL who appointed Chris Noone as their manager some time ago.

After many years pursuing these endeavours they have mostly all failed. Even the "Drive my Car" concept , the early back bone of the business is being phased out.

With the benefit of hindsight this company should never been listed in the first place as it was an unproven model in its infancy. In my view it should not have been listed until it had matured and proved it had at least a profitable model. Its many failures have cost a lot of people a lot of money.

As to whether these failures were Chris's fault or not is not clear to me, as if the model does not work then even the best manager in the world would not succeed.

Now however, through Chris we are pursuing a new concept called subscription. Again an unproven model in Australia, but is operating successfully overseas.

The company has some additional backers SG Fleet and Turners NZ and their appears to be from what we are told considerable demand for car subscription services.

I am hopeful with the additional capital raised and the expertise on the board they can grow the business now to commence becoming profitable, but there are many risks.

In my view Chris is a Willoughby man and focuses almost entirely on that relationship. He does not have a background in managing listed companies and is deficient in communication skills with the other shareholders. One can only hope that he becomes more communicative in the future and sells the benefits of this company to others, which on the face of it seems to have a promising future in providing car subscription services.