Ann: Presentation - Convertible Loan Notes, page-13

It's now worth doing the analysis on DOC assuming the convertible notes will be converted to equity. If cashflow is generated that would enable the pay back of the note, I think the share price would be well ahead of the conversion price and the note holder will convert early.

I have calculated that converting notes will result in 231 million new shares being issued. This wipes the debt which lessens the risk to the business and also reduces interest costs. Theoretically we should be on better multiples already. When DOC are cash flow neutral, Sales to market cap ratios should improve, The sensitivity analysis below examines what the share price should do at different ratios and sales results (assuming notes have been converted to equity).

This matrix is the resulting market cap based on sales and sales to market cap ratios

		Sales to Market Cap
		1	1.5	2
Annualized Sales ($m)	$83	$82.91	$124.37	$165.83
	$91	$91.20	$136.81	$182.41
	$100	$100.32	$150.49	$200.65

This is the resultant share price

		Sales to Market Cap
		1	1.5	2
Annualized Sales ($m)	$83	$0.14	$0.21	$0.28
	$91	$0.15	$0.23	$0.31
	$100	$0.17	$0.25	$0.34

I think we are way under valued still. These are all very conservate ratios. CY24 should be the year of redemption for DOC.

Cheers

Rusty