ABLM, page-8

Beale, the majority of notes are held by directors, ex directors, their families and friends. What ever they did, they did to themselves.

Apart from removing the debt from their books and paying interest on the notes, there is absolutely no reason for the notes to be converted to scrip, or does the conversion bring any other benefits to the company.

The big deal is that the notes currently have an option to convert at around 2c (maybe slightly higher). They now get 4 times that, plus options. A big difference.

If note holders decided to leave as is, the company would have raised a minimum of $1.85m rather than $4m, and a max. of $3.85 rather than $6m. It would have made absolutely no difference to the company's current situation and how much cash they need to raise.

In fact security wise, it would be better for note holders to leave as is. If the company went belly up they would at least own any assets, including IP, (after admin), which is better than holding scrip if the company goes under.