Ann: Addendum to the Notice of General Meeting / Proxy Form, page-6

Hardly surprising that the experts have re-enforced their initial views - they don't want to back down.
The additional explanation should make it abundantly clear that the Proposal is significantly undervalued.

I still don't think there has been any clarification of whether Mr Nash intended the cash to be part of his deal. If he didn't then his offer comes up to be equivalent to approx. $3.886m - that is getting way closer to the assessed value of $4.7m to $5.584m inclusive of the cash.

The suggestion that costs will be thrown away if the Disposal doesn't proceed may be correct, but if they then sell to Mr Nash, some of the work will be saved in formulating the agreements with him. And frankly, why didn't the company get approval from shareholders to accept the offer before going to a full contract?

As for the non-exclusive distribution agreement, I have seen other agreements like this where a distributor is appointed in Australia and couched as "non-exclusive" with a right to terminate on relatively short notice, but in reality they are the only (or only substantial) distributor appointed and there is an understanding that "if you perform, whilst we could terminate, the reality is we won't". Nevertheless, there is always a risk of loss of distribution rights. Did the expert even check whether the statement at 1.19.1 that it is available for sale at other competitors is still true? Have they actually lost their rights and are just selling the balance of their stock?

Oh and as for the comment at 1.20 that the distributor doesn't have a proven track record of distributing the product. It has a proven track record of distributing its main competition and clearly have a network of retail stores that they supply to. Did the directors just sign up to a distribution commitment minimum order of US$1.3m without having any confidence of meeting those targets? Not sure if I would expose my company to a 4% penalty for failing to hit targets without having some confidence.

Anyway ... as I keep saying ... going to be interested to see how this plays out at the meeting.