I'm out on a limb here.Res 1 to 3 - Yes. Non Related parties for...

I'm out on a limb here.

Res 1 to 3 - Yes.

Non Related parties for $40k of CNs. See next point(s).

Mainly because JL stumped up the $500k to begin with when it mattered most and I think we need to respect the current macro environment.

There is now greater macro risk than when the CN extension was first mentioned in December.

GF's $50k helped but even when getting 10% it was $5k a year. Now it's like $60k @ 8% for 9 months ($3,600).

I think the company should hang on to the $600k for now and accrue interest (approx $600k @ 8% for 9 months = $36,000).

There's no guarantee they will convert come late September and as it stands we will have the cash to payout then if required.

(Also read some other points in conjunction with these resolutions).

Res 4 & 5 - Yes.

I posted a lot last year that I wasn't 100% behind R&B.

Since then Regal has had some well documented problems with ASIC and AFP and some other holdings.

So post the recent Regal bailout and mindful of some of the flow on effects of the virus and I think we should settle and approve the $2m CR (in case things get worse).

Also Bombora have supported the company beyond their initial .0085 buy.

They bought off GF for his tax debt prior to Xmas and helped take out Regal.at recent lows.

None of us would have wanted Regal dumping on market at scale.

Res 6 - Yes.

With the current SP in the .006/007 range then authorising the exercising of options @ 0.011 seems sensible now.

Especially in light of the macro environment.

80m options @ 0.011 = $880k, Remember the remainder had already been exercised by the original option holders.

Res 7 & 9 - Yes.

These points were first communicated back in October when the SP was about 0.012.

https://www.asx.com.au/asxpdf/20191009/pdf/449b1r7t56rjb1.pdf

With a strike of 0.013 they seemed like a gift at the time.

Now with the SP @ .006/007 there's some work to be done to get these in the money.

Also they need to get consistently up near 2 cents before one would consider exercising,

Res - 8 - No. After all this time I fail to see what further incentive GF needs, (but they are offered on the same terms to other NEDs).

Res 10 - Not sure. More research required by me.

Res 11 - Yes, but not as confident as I once was.

It's clear they want the consolidation to make the SP more respectable and have the ability to raise for new acquisitions.

I still keep an eye on PB. Whilst he hasn't sold many shares he's now below 5%. Kirk got out when the time was right and given the haste PB left the building when India fell over perhaps he will move on when momentum arrives again one day.

With Regal gone - many of the T10 look solid supporters of the company, which hopefully adds stability post consolidation.

In summary:

Voting no to various resolutions now would put the company in a much weaker position re cash. ($2m CR, $880k via options, reimburse CN $600k+). That's approx $3.5m that needs to be signed off on.

Cash as at 31/12/19 was $2.6m with C10 to be paid out in late January ($1.1m) and the UK situation to be resolved and wound down. And we've been groomed to accept that Xmas & NY and the March quarter is a quieter time and the projected Cash flow for March was lower than usual.

I think a successful no vote, would force a CR at these levels, as we'd be approx $2m short. Based on expected cash balance of $1.7m at 31/3/20. If we had to pay back the CN asap, cancel the options and CR then that's approx $1.8m short.

I believe the large holders will collectively carry the day with this vote.

However, I respect everyone else's opinion and frustration on these matters and the SP doldrums aren't helping.

fyi - I received all my GM Notices in the snail mail yesterday.

Other matters:

Res 2 - At this stage I don't believe JL will Convert come Sept 23. I think its more likely he will convert his 30m options @ .0085 which expire the week before.

It was encouraging to see RT buy 43m shares the other day. So more skin in the game from senior management.

If Regal had to go for their own reasons then at least other large shareholders stepped up and filled the void.

I think we're owed a bit more explanation on the UK. Some of us had a strong inkling things weren't right late last year.

It's interesting the UK wind down will likely happen some time after the GM. I would like to know what the departure of a co-vendor of C10 means, given the Variable portion of the sale, now that the fixed component appears to have been paid. One of the major acquisition points was the C10 vendors were staying for 4 years. Is there a payout? A no compete clause? Does Alana get a pay out? Should they get a pay out? Washing it away as being an immaterial hit to revenue appears weak.

As it stands I believe we overpaid for the fixed portion of C10 compared to what DWX cost. C10 can be turned around, but I'd like to hear a lot more about what unfolded and how things are tidied up, than the brief explanation we have received to date. Also did we make the final C10 fixed payment?

Like the market I've long valued TSI at zero (but I hope for upside). If the company raises after March for further acquisition(s) and TSI is still unresolved then the board needs to ask much harder questions of GF than they have to date. This is especially so, as for the last 12 months JL has made his stance on TSI increasingly apparent.

It has also been 3 years since JL joined TSN/VOR. Currently, the SP doesn't reflect the work that's been done to date. In October last year it looked like the turn around was tracking ok and the SP reflected that. It is annoying to see how we have ended up where we have, but we have.

March also represents our EOFY so it would be good to hear more about how the year went for TSI.

Finally, have a look at TNT and the energy with which Geoff Lord ascended to the chairmanship just recently. TNT has it's work cut out in their area of cyber security but they have a clear vision on where they expect to get to.

Initially there was ... https://www.asx.com.au/asxpdf/20200114/pdf/44d81frfgj1wmg.pdf

Recently there was ... https://www.asx.com.au/asxpdf/20200302/pdf/44fn8cyx5hhsk9.pdf

Note - I don't owe TNT, but I appreciate what some new energy, vision & vitality can bring.

Like I said, I'm sure I'm out on a limb, but after reflection that's my approach. I think we need to get through this period and come out stronger in April.

I don't like the current SP. I don't like the sentiment that has set in on HC (though some of it is warranted) because it limits debate. Ideally, TSI needs a resolution or a Geoff Lord type of statement on what it means to the group and where it sits going forward from Gary. JL needs to refocus and get out of C10 what he appeared to get out of DWX last year.

gltah.