Ann: Divan TV Alliance Agreement, page-37

The original deal with Divan was for a commercial relationship for a commercial outcome including the supply of content which includes Hollywood content. A JV of some sort to assist TV2U in its endeavours is novel and implies to me that TV2U are despite what it told us shareholders in the prospectus and subsequently, were and maybe still are far from commercialisation product ready.

What I read into this IMO based on the high cash burn rates over the past few quarters is that TV2U are still evolving their product architectures, hence for instance when Divan need a DRM capable solution, TV2U cannot deliver, and Scott Mason or whoever, step into the breach and offers a solution.

OTT Labs who are the tech arm of Divan are very capable and have commercialised products that HC members often show links to regularly on this forum in the hope that TV2U was somehow part of the outcome in that delivery or content. TV2U will no doubt learn alot from partnering in this way with OTT Labs but to me it speaks of raising the white flag that TV2U at present cannot deliver alone from their own employed resource base.

The announcement may mean the recently announced POC projects deliver and this is a must. What price TV2U pay in all this, and how IP is protected in the sharing of staff, tools, and software is a risk register item to be mitigated by whomever that falls to commercially.

There are performance reward resolutions tabled in the Notice To AGM announcement. I hope management are not seriously expecting shareholders to vote on any Remuneration Report or Staff Performance Schemes that rewards an outcome where TV2U has had to reach out for assistance after having gone into the market place with a cap raise dedicated to resources and R&D towards commercialising opportunities in the pipeline.

I get this is a get out the jail card with working capital now being critically low, and given the hiatus in trading plus the probable legal costs, admin costs and any other costs arising from Federal Court action and ASX compliance obligations, we will incur a larger cash burn again now in this quarter due to this unforeseen issue.

I support this collaboration happening only because I trust OTT Labs as professionals who have the runs on the board, and also I can see no other way forward for TV2U given where it has arrived at in all this. I feel we are like a gambler at the casino now putting the last of our chips towards the pot hoping the card we are flipped is an ace.

TV2U do not need more deals in the pipeline at present IMO as they are like an Anaconda struggling to swallow a pig. The focus has to be commercialising any one or two of the announced deals else no money will exist in 2017 to progress further. The novel approach here, which was alluded to in their Quarterly Report, has to be supported only because a CR at this point seems impossible given the legal issues unresolved.

Least we know why Tom was in the Ukraine recently.