Ann: Appendix 4C September 2018 Quarter, page-30

Here we are. Now at or below 20c, andlikely to remain there or thereabouts until revenues increase.

For three reasons a Capital Raising seems inevitable.

Firstly, our revenues are below our income. At current rateswe have about a year left, unless our income from P&G rises rapidly.

Secondly, the Board has decided, quite rightly IMO, to getfurther up the value chain and try to get a larger percentage of what thecustomer pays.  That almost certainly meanswe will release one or more products in our name or be part of a joint venturewhich does. That is going to cost money.

Which products will they be?Well it will not be Surface Hygiene. And DCE looks like itmust be done by FMCG companies who already have the products and distributionchannels to which it can be applied.Bodycare is out of the question because that has too long alead time.

So, Bodyguard it is, and the sooner the better. Nor willBodyguard be released as one product.  Nodoubt there will a number of variations to cater for a range of markets. Kneerepair and pain relief will be but one of a series of similar products. Vitamins,Voltaren and others are likely to be involved too.

But it is the third reason for a Cap raising which is likelyto be interesting.

We have taken on a Board which has a proven record in buildingcompanies and which, significantly, have been sold at prices which yield a verygood return for shareholders.

But right at the moment our Board are not major shareholdersand there is no way that they are interested in OBJ to earn directors’ fees. Itis in their interest, and probably in ours as well, that they take on a largershare of equity.I might be wrong but I expect that there will be a capital raisingat a price, and to persons, which will result in a major change in the controland ownership of the company.

If that happens it would be nice if all shareholders had theopportunity to take part in the capital raising and not just be left with thecrumbs of putting in $15,000 after the event.

Shareholders should be allowed to participate ona basis which is pro rata with their existing shareholding.