Ann: Investor Presentation, page-52

If I were the MD with $5 million from the rights issue I would be inclined to apply the entire amount to the ADM loan. Prior to doing that, however, I would make it conditional on a new financing agreement with First Samuel that allowed the company to pay down the remaining $2m to ADM on the basis that First Samuel becomes the first ranking lender. It would be in FS interests to agree to such an arrangement. At that point, the additional cash and exchange rate cost savings ($1m) from paying down ADM could be diverted to paying down the first First Samuel debt. It is absolutely essential that TTI rid itself of the excessive interest rate costs that are impacting its ability to grow and stabilise the business. A debt free TTI would be an entirely different proposition for investors than the highly indebted mess we see today. My guess is the Board would not like such a scenario, however, because its likely TTI would become a takeover target.