dec qtr casflows out - and positive, page-4

Hi Grant

The $750k shows as a "financing" cashflow item, which in the context of Dec qtr cashflow items is shown as a net outflow (as the money was paid as a deposit). It is clear that the hold up with the FNT deal revolves around the vendor (Mr Mackie) and his willingness (or lack thereof) to complete the deal. As such, the deal will be terminated and ATC should be entitled to a full refund of all deposits paid (and damages).

As for the convertible note, I'm sure that there will be an option to reduce further exposure (and dilution of share capital) by negotiation with the lenders (given the mony is no longer required for the acquisition. It could probably be used in working capital, which presents a challenge for management to regain these funds ASAP and utilise within the business.

This week should see some more news released to the market regarding the business (and its future).

Cheers