Ann: Update on PFG Finance Facility, page-22

Disappointing but not unexpected day regarding the SP. There is obviously an over hang of stock from the $13m cap raise at 4.8c, that are prepared to sell for a 10-12pct profit. IMHO, today's announcement was pretty much fully priced in.

What todays announcement means in a nutshell:

(1) Eastfield can no longer pull the rug from under the coy. Therefore "going concern" will be removed from annual report.
(2) Eastfield now must offer commercial terms. None of this paying up front rubbish they have force on Bud
(3) New manufacturers who have various comparative advantages which certain SUKs.. Expect cost reductions leading to higher margins and/or cheaper product to the consumer.
(4) A debt forgiveness of $13Aud. ( OMG this huge IMHO) To have paid this amount back Lifx would needed a $43m revenue order.
(5) Down the road, when PFG sell their bud collateral shares ( either as a block to a fund who wants in or managed over time in the market place) these funds reduce the debt owed. In theory, if they hold off and sell at say 10.4c, then the principle owed to PFG buy bud is $5mUSD.

Now the coy can have greater certainty of supply and no need to turn away orders. With the $13m in the bank to make extra lights, the coy can finally get ahead of the curve.

This has taken an extraordinary amount of work by the Bud team, especially DM. Investors need to cut a bit of slack on getting Oct-Nov sales number out. They were a secondary priority to closing this refinancing.