Ann: Appendix 3B, page-6

Not really manipulation.

They receive a 10% discount on the conversion of their notes, immediately sell their new stock for between the current market price - 0% discount, and 10% discount - their break even.

Let’s say their average sell is a 5% profit , then it results in a fall in market price of 5%.

Rise and repeat on the next tranche.

No manipulation or shorting necessary when your conversion price is set at a 10% discount to 20day VWAP.

They make 5% on $500,000 = $25,000 on each tranche.

Our share value drops 5% on each tranche.

If the notes had a set conversion price (say 4.5c), this wouldn’t be happening on each tranche.