Ann: Notice of General Meeting and Notice Letter to Shareholders, page-3

I do not like share dilution, and I hope Management does not fall into the habit of frequently resorting to it. I would prefer expansion to be retarded to what WAK can handle organically.

With demand exceeding WAK's ability to supply product, WAK should be able to fund its operation from revenue. Ignoring repayment of the principle for now, if WAK's operation cannot justify the interest expense, it brings the viability of the business into question, other things being typical. Other things may not be typical, but then we need to know what the peculiarities are that require the funding. I could invent a story. For example, 18 employees may keep the plant running at one shift usage, and hence there is leeway to increase to increase employees to thrice that number and get better utilisation of the plant. Whether WAK can find more local employees is something that I don't know.

If there are customers screaming for product, negotiate with them to secure a staggered delivery that meets their requirements, with the proviso that they pay in advance to meet the associated staggered expense to produce product. A flexible mind should be able to cut a win-win deal in these types of circumstances.

If shares are to be issued, I would like to see less going to Management – too strong a hand can lead to dysfunctional behaviour. For example, maximising royalties paid to major shareholder, rather than focusing on the best interests of other shareholders. I would be happier to see another significant customer hold more shares, like is now the case with Stanco. One or both of the major European-based distributors that have become WAK customers, for instance.

In summary, I would not like to see Alf Baker getting more shares at 15c.

By the way, with the benefit of hindsight, the last CR at 15c could have been justified by WAK receiving firm enquiries for tonnage that required to be delivered quickly, and horning in on the woes created by the WAR in Ukraine probably required haste. This may still be true, but if it is, give retail shareholders the story, and the option to buy at 15c ahead of the insiders.