Ann: CardieX Update on the Acquisition of 50.5% of inHealth, page-23

Does anyone get the info from the mailing list ?

I do, and its worth readinng.


It does make alot of sense as to how this has turrned out.

Here it is

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Please see the attached further qualification to the trading halt which outlines the circumstances around the newly executed GEMDC contract and the ASX's enforced proceedings surrounding that contracts disclosure.

In short, if we had disclosed the commercial terms of that new contract and the contracting parties it would have resulted in a material financial loss to inHealth given the disclosure restrictions that were being enforced by GEMDC - and the communication of such disclosure restrictions by GEMDC to CardieX.

In the context of CardieX being told by GEMDC that were we not to make any disclosures however we were also advised by ASX that unless we did make such disclosures that we would be put into permanent suspension until such time that the required disclosures were made. We were not prepared to let that happen nor were we prepared to jeopardize the materially significant contract between inHealth and GEMDC that was signed last Friday by making such disclosures. So it was a catch-22 for us.

The solution for us was to argue that the contract was not material to us at this time although such contract would become material on full conversion of our Convertible Note at the time when that conversion occurred. As we currently own 7.7% of inHealth it is not considered material at this point and hence we were able to comply with the ASX Listing Rules and also not breach the requirements of the contracting parties.

The attached note explains this in more detail. Note the ASX announcement this morning was short on detail as that was a strictly drafted and "thrice approved" announcement in a form that was required by the ASX - and no details of the contract were allowed to be included.

On the upside GEMDC and inHealth have now executed a multi-year exclusive contract with commercial rollout commencing immediately. On conversion of our Note we expect this to be a materially significant contract to CardieX.

The downside is that we have strict enforcement surrounding disclosure of further details of this contract. It's not optimal but we believe the long term value will outweigh the limited disclosures at this time which were completely out of our control.

Please let me know if you have any questions.

Craig Cooper  

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Better than being forced into suspension by the ASX i guess.