Hi rturve Thanks for your comments. We always take them on...

Hi rturve

Thanks for your comments. We always take them on board. The board of directors and collectively control around 25% of the company, so we would not complete a transaction that we feel is not in the best interests of the company. In this case, unexpected large pre-orders (representing 50% of last years total revenue) were received in requiring an immediate capital injection to fund additional production runs. We needed to move quickly, and have secured up to $1.8m in funding.

It is obviously disappointing that the share price has moved down since the announcement given the growth trajectory of the business, which the market has been waiting for .

To be clear, there are no "free options", they are all exercisable at 6 cents. The options on the convertible note convert to a maximum of 11m shares, but depending on conversion date and the share price at that time, may convert be at a much higher price and hence lower dilution. In addition, 50% of the convertible note is repayable with cash, so as it stands currently, if the company chooses to repay early, there potentially may be only $200,000 of convertible notes outstanding.

As always, happy to discuss further, [email protected]

Cheers
Ryan