Ann: Q1 2021 Quarterly Update and Appendix 4C, page-14

bearhype347, I used to be a huge advocate for this company and the way they were positioning themselves and I have watched from the sidelines as any decent strategy and the company has imploded.

You say they don’t need money but as I write this the company has a net cash position of about zero. The remaining $4 million cash they have is what has been drawn down against the Southport facility which is the jewel in the crown for this company. They have mentioned improvements to the facility, but as per the 30 April announcement last year, they may not own it for much longer. Like I said, the net cash position is about zero, so any expenses going forward are being paid from debt drawn against Southport. The company has clearly stated that at best they will be burning about $500k a month so they are in a disastrous position where they desperately need to raise cash not just for working capital, but also to pay debt (while still losing money).

I have been watching from the sidelines for over a year now and I was hoping the next catalyst would be the recruitment of a new COO and CEO. That was snuffed out today and given the failure of management to recruit anybody to save the company, I would be really worried about their ability to raise further funds given their situation. A big red flag is that one of their recent raisings was done through a ‘strategic’ investor. We’ve never even been told who that investor is.

Good luck with your investment but stick to the facts. From a financial perspective they are in massive trouble. Well played by Mitchell though