Ann: Initial Director's Interest Notice - A. Chapman, page-5

I can't speak to the past board members salaries from inception but at the moment the salary pool for the 3 board members totals $170k all up so certainly not $500k each...over the last little while we have cut all costs and attempted to put the company in a position that it is pretty much cash flow neutral.

Neuvis - the original AC8 Management team spent a lot of time and money trying to get a product to market as a delivery system for medical cannabis. Unfortunately they were doing this before there was an actual market and without actual knowledge of what the market looked like - AC8 isn't on their own in this regard as the MC market as we know it has changed and morphed almost on a monthly basis since it was first introduced in 2018. To give you an idea other companies in the sector built facilities to cater for 75 tn of product per annum only to realise 5 years later that the overall market in Oz for Medical product is maximum - 25 tn per annum. What I don't think anyone in the industry foresaw was that circa 75% of Medical Cannabis users are actually Recreational users just accessing better quality product...there is a reason why 75% of sales of Medical Cannabis in Oz (and around the world for that matter) is flower when arguably the best way to access pure Medical product, is via an extract...Unfortunately with every start up business and start up industry, there are twists and turns and money is sometimes not spent in the right areas. At the time, the board and management did what they thought was best with the information they had at the time. Only with hindsight has it proven to be incorrect. We are currently looking at options to sell Neuvis but do not have a suitable solution at this time.

CannPal - a good little company but scale was an issue and it needed a lot more money spent on it that the AC8 board decided wasn't in the best interests of shareholders. Again the regulatory pathway for CannPal changed and the AC8 board made the strategic decision that spending the companies money in an area that the market wasn't rewarding, was a pointless exercise so we have maintained a carried interest of 48% of the equity in CannPal while Layton pursues commercial funding partners for its development. We are confident Layton will achieve his goal with it and AC8 will have an uplift in time on the balance sheet, as a result.

As soon as we have more information on the future direction of AC8 we will communicate this - but I can tell you all - it won't be long from here.