Ann: Response to ASX Query Letter, page-23

Hi Rob,

I just need to correct you on one point,

The letter from the ASX was sent on the 20th of February, What is more concerning is the following.



WKT again breached the listing rules by not responding to the ASX by the 23rd of February, one has to wonder if the details provided in the last two announcement were a direct results of the query and WKT was trying to secure any deal they could. I.e the conditional funding arrangement with BMCG (27th of Feb) and the new contract with TNR (28th of Feb) which needs a director loan and shareholder approval

It might explain why WKT was desperate enough to enter into the agreement with BMCG, giving them a very generous commitment fee and the get out of jail free card regarding the liquidity of the company.

Have you seen an ASX listed company fail to respond to the ASX within the specified time? Its even worse that it took WKT an additional 5 days and they pumped out two

I also find it very interesting WKT claimed in the QTR report they were looking at raising equity to continue the companies operation expenses, yet in the response to the ASX they suggest they have the fund available to continue for 12 months, I find that very hard to believe as the companies recent announcements suggest other wise.





Highlighted above, WKT advised a CR is an option, Yet last nights announcements advises they don't need one,
Then we have CRDB debt drawdown, As announcement on the 27th of Feb "CRDB have cancelled the loan facility"

You also raise a valid point of the threat of an suspension,

Suspension
If you are unable to respond to this letter by the time specified above or if ASX does not consider your responses
to be satisfactory, the suspension of trading in WKT’s securities will likely continue under Listing Rule 17.2 or
17.3.

I honestly don't think these conditional arrangements WKT has announced in the past few days will satisfy the ASX, It will be very interesting to see what happens,

@Croc-file Do you think BMCG was aware of the ASX aware notice while they were negotiating with WKT, you did advise BNP Parbis (one account has BMCG's shares) was selling right after agreement, do you think BMCG was liquidating its shares just in case WKT was placed into suspension again? It might explain why they haven't converted at 8.5c.
As you would be aware, during the last suspension, BMCG had only just converted a significant amount of equity into shares, it wouldn't have been wise for them to call in their loan, If they have sold all their shares now, and WKT goes into another suspension (breach of their agreement) they might call in their loan this time.