Ann: Prospectus Dispatched, page-7

Not looking good for the SPP.

It appears the insto dumped 20M+ yesterday on market of their 42.83M shares issued to them the other day.

Was expecting news for them to dump their share into similar to RFX CR/SPP last year.

No news on Monday & dumping the remaining 20M+ shares will result in 0.7c SP.

Markets also currently selling off so could go as low as 0.6c.

Only way SPP will succeed is 1.2c+ SP on market.

They will have about $500k cash remaining end of this quarter + $1.5M via insto = $2M + SPP funds.

RFX was subscribed 54% & raised another 6% shortfall offer = 60% in better market conditions.

My guess is 20% x $4.85M = about $1M.

So will have about $3M end of Q1 FY23. Will need at least $2-2.5M for Q2 = $0.5-1M end Q2 FY23.

Insto can tip in another $1.5M = $2-2.5M cash for Q3 FY23 the low quarter & they will need at least $2.5M = nil to -$0.5M balance end Q3 FY23.

They will be relying on about $500k via DW8O options by December 2022 & $3.3M via recent options by March 2023 = $3.8M to keep going in Q4 FY23 + $2M insto funds due in August but most likely will have CR/SPP again.

Here is their plan if SPP is low:

If the Entitlement Offer is not fully subscribed, and depending on the level of take up of the Entitlement Offer, the Company intends to scale back its proposed use of funds by reducing the expenditure undertaken on human resources across the Kaddy Marketplace division and shared services, as well as advertising and marketing expenses across the Kaddy Fulfilment and the Kaddy Marketplace divisions.

Less staff, less advertising & less marketing but no mention of management salary cuts. Trim $50k off each can hire an extra person.