Ann: Appendix 4C, page-9

Dear Davisite, may I suggest you have a listen to the conference call from this morning? I dialled in and listened and came away encouraged. Frank and Scott outlined their progress very well, and explained that the decline in 4th quarter sales from 3rd quarter was mostly becuase 3rd quarter sales were higher than 'normal' because of the distributor stocking orders delivered in the third quarter. Also, procedural growth of 13% in the fourth quarter of 2018 over the third quarter of 2018 is a very encouraging metric i.e. more surgeons are choosing to use Aeroform. 

I did ask him about the cash burn and need to raise funds and he concurred that that will be the case, probably in the middle of the year. But he also said that they have a number of interested parties already lined up for a capital raising. He also confirmed that the debt of $US15m remains in place and they are meeting their (interest only) repayments. They also expect to be gross margin positive by mid-year.

Listen through until the end because Frank outlines a nice, succinct summary of progress and the outlook for 2019. Yes, they'll need cash, but the rate of takeup and improvement in selling strategy, hospital uptake and surgeon uptake, as well as positive feedback from surgeons and patients, gives me confidmece they have a great product that is progressively gaining market share.