Ann: Convertible Note Facility Update, page-5

Some questions:

Why is HC so confident there is demand for the IPO shares when the company can't even sell all the convertibles which have materially better risk return characteristics than the IPO shares? i.e.: the notes

1. pay a coupon
2. have price protection via a favourably adjusting strike price
3. have priority over equity
4. have additional attaching options

AND YET, THE COMPANY STILL CAN’T SELL THEM ALL!

So, what does that tell you?

I suspect the delay is because they have insufficient demand for the IPO to launch. If the IPO stalls, where does the share price go then?

P.S. Annual report due by the end of this week. What do you think the Auditor will say?

Just my opinion of course ...