Edison note, page-3

I raised this issue with Trish Fields several weeks ago. Her reply was dismissive. That was not unexpected as communication with directors is rarely fruitful. An injunction would clearly be a disaster. I expect legal action and the fact that Whetstone will not release the wrapping machine indicates he is up for a fight ( and the fact that he sacked his sister and is now engaged in legal action!). I await details of the new capsule and successful production at our new facility.

As a shareholder a move from left field like this exposes me to much more risk than my due diligence had anticipated. Have to trust management in these situations and I am nott sure that I do! I believe in the product, but that is clearly not enough without good management. ( I am sure that there is a Buffet quote that would tell me to abandon ship at this point)

Email to PF and her reply

Me: "Most material to the 40% share price drop is the Dec 31 announcement regarding the change of manufacturer and the much touted patent protected capsule for which Yowie group had exclusive use in the US. Obviously competition will now have access to this capsule and I understand Whetstone have begun the process to sell the rights. As a direct consequence the probability of a patent violation lawsuit seems inevitable. An announcement to allay the market concerns regarding these issues seems overdue. I expect the knowledge gained in the Candy Treasure legal case may have given you confidence to proceed with what appears on the surface to be a risky move and if so I would like to be informed as such. It remains difficult to rationalise and contrary to information given repeatedly in investor presentations."

PF: "The move to manufacturing Yowie at the Madeleine Chocolate Company with the Yowie owned, FDA approved, U.S patent pending capsule is on schedule in accordance with details outlined in the ASX announcement of December 31, 2015."