Ann: Business Update & Appendix 4C, page-14

I don't think Ron would want to put his money into a dog and I think he has big ambitions for this stock.

However, he could easily dilute his holding by averaging down in a Cap Raise just like he did last time. He needed shareholder approval via a EGM for his parcel of $500k that he got at 2.4c because he was the Chairman.

The working capital facility could be used in the coming months to bridge any shortfalls, until a cap raise or equity injection takes place that he may participate in.

If it's more of a strategic alliance it will still probably need shareholder approval.

I think you're right on many of the metrics at this stage, but maybe there's some valid reasons for some of them.

The planned decrease in Advertising (from $341k to $289k) could be due to the rollout of 47 Boots stores at various UK airports last quarter being expensed. (I think we have to pay initially for each store set-up).

The fact that 47 new locations opened up in the UK after the initial 600 store rollout in late 2015/early 2016 might point to a strengthening of the relationship?

However, in the interim they continue to spend a lot on advertising & promotions (as they have for awhile).

The planned reduction in Plant & Manufacturing is interesting form $235k to $146k.

It could be that the process of producing is "lumpy" based on initial orders for each new distributor. It may be that the cashflow isn't what it should be to fund production or they have adequate stock levels.

It may also have something to do with the suggestion that they were thinking of opening a manufacturing base in the US. (Thank you to whoever posted that article awhile ago, maybe back in November).

That article implied they were looking to wind down some of the China based manufacturing with an aim to setting up manufacturing in the US.

So the comments "to reposition the company’s share register" and hold an EGM "to position itself to take full advantage of key strategic initiatives that have been nurtured over the past 18 months" are what needs to unfold.

They have stated in the AGM presentation that they were seeking 13,000 stores in FY17 (not CY17) and currently they are in approx 3,000 stores. As it currently stands we can't fund that transition - hence how do we transition?

Initially I assumed a capital injection and a SPP, but maybe it is some form of buy out or transfer of ownership.