Ann: Despatch of Retail Offer Booklet, page-2

Personally, I see this as a load of crock! Fancy asking for equity capital for M&A's which have yet to be identified, cash to pay for the last M&A as well as working capital for the same entity. Crazy.

In dollar terms: 52% ($1.5m) of the funds needed for "non-existent" / "not yet identified" etc new M&A's........38% ($1.1m) needed so they can complete the payment of the last M&A (BLC) .....10% ($300k) to provide ongoing working capital for the last M&A (BLC)....followed by another $300k needed to pay for the costs of the offer.

Not to mention the issuance of 144,357,496 new shares to the register. I wonder how much that dilutes existing shareholders???

As I've posted before, the lazy way of building a company's balance sheet is by M&A's and its worse if you have to keep robbing shareholders to meet previous M&A's working capital. I'm an old fuddy duddy and would like to see growth being built the old fashioned way of retained earnings. The strongest part of the Equity account should not be retained losses.

If you can't pay for an M&A out of retained earnings (ie - cash) - then don't buy it....work harder!!

Shareholders are being fleeced!

2.5 Use of funds
The Company intends to apply the funds raised under the
Entitlement Offer as follows:

Type Amount (1)

Potential M&A transactions (2) – identify
and execute on potential accretive M&A
opportunities with a view to integrate
into the AN1 platform and scale to
provide revenue and profit to the
consolidated business. Funds to cover
costs of acquisition and working capital to
grow
A$1.5 million

BLC deferred consideration (3) – payment of
earn-out to HNG resulting from BLC’s
FY22 EBITDA growth, clearing remaining
debt-like items from AN1 balance sheet
A$1.1 million

BLC growth capital – ongoing investment
into BLC brands (marketing and
inventory) to grow profitable revenue
A$0.3 million

Expenses of the Entitlement Offer
A$0.3 million

Total $3.2 million

Notes:
(1) All amounts are approximations.
(2) The Company has not yet identified with certainty whether any
such opportunities will proceed or, if so, on what terms.
(3) As announced to ASX on 9 December 2022, the Company and
HNG agreed to settle the deferred consideration owing by the
Company to HNG in respect of the Company’s acquisition of BLC