Ann: Notice of Extraordinary General Meeting/Proxy Form-CM8.AX, page-35

Hi JohnnyF, to clarify, I didn't say they made the earn-out payment from the additional borrowings. I stated that the pre-existing cash balance of $4.4M (as of April 30) would have been used to make the earn-out payment. This would leave $0.6M cash from that April 30 balance of $4.4M, plus whatever FCF was generated between April 30 and June 30.

The additonal borrowings of $3.0M from the new facility would then top up the cash balance to get to $5M (taking into account whatever FCF was generated in May & June). So the additional borrowings is not used to make the earn-out payment, but it essentially replaces the cash used to make that payment, and if it were not obtained then the cash balance would be somewhere around $1M, depending on what May/June FCF is.

I'm probably sounding a little irate. Its because the more I read CM8's material, the more I think they are not being upfront in their communications:

1. This started some months ago with the lack of explanation about the earn-out being calculated on the maximum Track forecast, but within months they were advising the market that Track was now in line with the minimum forecast.

2. They also chose to report a "record quarterly result" in April cmparing the March quarter with huge % increases in revenue & ebitda which includes Track to the PCP which obviously excluded Track

3. Now last week they have stated in the re-finance update that they have paid the earn-out "from existing cash reserves" which is true but would leave cash reserves very low and in need of topping up - via the new CN additional borrowings.

4. They also highlighted in their bullet points in the announcement the lender "can convert" all or portion of the facility into shares at a 30% premium to EGM date closing, but not elaborated on the other 2 options.

5. Then there is Track itself, where they have been dead quiet since that April announcement and in which they spelt out Q&A growth but nothing on Track.

Unfortunately imo CM8 is starting to show a track record of the wrong kind, and this is changing my sentiment towards the company signficantly. The issue I have is not only what they're saying, its also what they're not saying - consistently.

Cheers, Sharks.