Ann: Notice of Extraordinary General Meeting/Proxy Form-CM8.AX, page-16

It seems some commentators here have not read / fully understood the document



The following limitations apply to their conversion:

Dollar Value Limitation: Means a limit on the issue of Shares not to exceed 20% of the aggregate dollar trading volume of the Shares over a 20-day consecutive trading period prior to the relevant date of issue of Share

Beneficial Ownership Limitation: Means be Voting Power (as that term is defined in the Corporations Act) of up to 4.99% in the Company.

read in conjunction with this statement:

We note that this number is a theoretical maximum the Company is required to provide for shareholders to understand the largest number of Shares that may be issued under the Note Subscription Agreements. To derive this figure, the Company has assumed the lowest price possible of AUD 0.10 under which the principal amount owing may be redeemed by JGB as Shares, an exchange rate of EUR: AUD of 0.65. Given the multitude of scenarios that may be relevant the Company has not considered the impact of the limitations on the issue of Shares presented by the Equity Conditions, Dollar Value Limitation and Beneficial Ownership Limitation which will also restrict the number of Shares the Company may be able to issue. Therefore, in practice Crowd Mobile expects the equity dilution to be a far lower number than 188,664,666 Shares.



Furthermore, conversions are limited to the monthly equity cap, about $1m p.a. So they cannot convert everything in one lot.