Ann: Response to ASX 4C Query , page-3

If that asx query is not an eye opener for current investors then NOTHING will save them.

That is as serious a situation as you want to be in. Any potential funder at this moment has read that ASX release and knows that they have the company over a barrel. They can get what ever terms they want at this point.

The issue for funders is how do they get their money back. The company cant afford to just take a con note, as the interest repayments would just be coming from loan capitalisation and not revenue.

Hence the ONLY funding available is a capital raising- dilutive to current holders. Existing investors are about to take a massive haircut as the business is recapitalised.....IF, and that is a huge if...they can find an investor willing to take on board lots of worthless paper.

I would expect we will see a few more jump ship today.

Kiril.