"The proceeds from the issue of the convertible notes will be used for working capital purposes including the building up of supply chain inventory and advertising to support the expansion of SPACETALK sales."
Sounds like they are going to order more watches. I can't see how else to interpret "building of supply chain inventory" - unless it's for accessories. Or maybe they are selling one colour faster than others and need to top up on that colour watch (e.g. maybe the new pink is proving more popular than expected).
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Ann: Convertible Note Facility Drawing, page-3
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