Ann: CFDA Update, page-50

I just got out of the AGM and I can tell you this company is REALLY going places. They are building a long term sustainable company with many more exciting things to come, near and long term. The CFDA update relates to the acceptance of their application. This is a very important step as it means that the application has been assessed and has been confirmed as all in order. Accordingly they have been issued a CFDA number. Laz emphasised that to get to this point is a major milestone as no company has been refused approval from this point on. The point is, the application and everything in it has been approved. Final review is a mere formality. They are also looking to expand into SE Asia from Vietnam and going through all the necessary steps there. Vietnam is the second fastest growing economy in SEA (China no 1 obviously.) Vietnam will be a beachhead to SEA, and the other WHA cofounder has relocated there to oversee that expansion. They are both off to China and Singapore tomorrow for nine days, looking at all their options. The importance of their Vietnam subsidiary is that they have control over the whole enterprise into SEA. They are also engaging with the daigou channel into China, establishing a special channel just for them and engaging directly with them, setting up meetings, tastings etc. Emphasised many times that they are building a brand, and that takes time, but along with the other products they are adding to the range, they are looking to establish themselves as a big long term player in that region and the rest of the world. They are also committed to using all Australian only ingredients, as well as organic, and adding goat products also. The heads of agreement with ODFA includes a powered drying facility which will be Australia's only dedicated organic only drying facility. Also, B&P capacity at the moment at 20mil tins per annum, but that is based on a five day 8 hour shift. Mostly automated, they have the ability to dramatically increase capacity as demand grows. On the whole I have to say that I have never been more impressed with a board of directors or more excited by an Australian company. Of course this is just my notes from the AGM, conveyed as accurately as possible. All the usual disclaimers apply. DYOR etc. Next quarterly sales may be sluggish as final approvals are given and the transition into China takes place. Mentioned that WHA are and will be the only Australian IF on the AYD shelves in the 100 stores there, pending CFDA approval, and looking to expand into the entire chain. There was more but that's all I had time to note. From the Q&A, no capital raising planned in the near future, or at all ideally.