3b, page-2

Been keeping QHL on my watchlist since 2006 but never really got into the stock except when there is volatility. Essentially I only trade this stock.

If you look at the end of page 2 of 7 on the announcement on the 27th April titled "Quickstep secures $17.3million funding" it states "If the volume weighted average price of Quickstep is less than AU$0.28 on the day La Jolla elects to convert, Quickstep may elect to repay the amount rather than converting it into ordinary shares."

It seems that Quickstep did not elect to repay the amount but issued the shares instead at "80% of the average of the volume weighted average prices of Quickstep shares during the 10 trading days prior to La Jolla?s election to convert".

This is management's decision.

Hope this answers your question