Ann: Cancel - Proposed issue of securities - SMN, page-5

I didn't see that coming - cancellation of proposed rights issue.

Quarterly report due the end of this month should be interesting.

The company needs money to pay Tulip Bay $500,000 plus repay $800,000 to Steve Forman for his loan. They also require money for working capital.

Maybe AEM & the recent acquisitions are producing the necessary cash flow to overcome the need for a cash injection.

The cash balance at the end of the September quarter was $1.632 million with another $2.611 million finance available which totals $4.243 million & the net cash used in operating activities was $621,000 for the quarter.

SMN can probably get by without the proposed $10 million, now cancelled, rights issue.

FAA approval may be closer than we think or AEM doing very well.

I have previously mentioned the sure way for a rights issue to succeed is to attach an option to each right & that possibility would still be available to the directors.

All of you shareholders who were accumulating cash for the taking up of the 1 for 8 rights issue can now use that money to buy on the market.