Ann: Funding Agreement, page-17

Found another MDV - Medivac. Its really important to go back to when they were issuing shares monthly and look at the impact of the issue. I dont think LJC shorted the stock but they did dump the stock as the volumes kept coming. A lot of people bought the dream in INT and some even paid in money they really should not have done and in the end they kept chasing after a lower average believing the business would turn. I sold out and really probably made a very small loss as I had had some big wins trading it earlier but really felt for the guys who each year stuck more of their money in the stock.

Personally if this stock asked for a CR I would be prepared to put more in because I think in the next 6 months you would get a lot of clarity. However bringing this type of funding on board makes me very concerned. They seek to suggest they are long term funders - Look backwards in INT and I remember they portrayed themselves as investors not what they turned out to be in my opinion and in the case of INT stopped the funding agreement because the share had hit 0.1c. They had proposed a share consolidation that failed so they couldn't prolong the spiral funding.

I want to state that these types of companies are not doing anything wrong - Its an option they dont force you to take the money - but once in its not easy to get out. I often wonder why management do it - why not go to key shareholders and get support for rights issue - I suspect its because management know that the key shareholders will want changes.