Ann: Quarterly Activities Report and Appendix 4C, page-5

Let's cut out some waffle and focus on some relevant key data:

In the quarter just gone they raised $2,500,000.

The sales they excitedly raved about recently totalled $5,157! This is *down* dramatically from the previous two quarters, during which revenue from customers was $232,748!!! The previous two quarters were miniscule compared to costs, but $5,157 is nothing compared to expenses.

Expenses for the quarter were about $800,000 for 'staff costs' and $1,000,000 for 'administration and corporate expenses' (am I the only one who considers a million dollars *per quarter* to be astronomical for a company of this size and economic situation?). This company literally spends around $7 million per year on staff expenses, which is literally most of the money it brings in, which is literally mostly from raising capital from investors. Just putting that out there. Many people running this company are from the same family.

The recent capital raising of $2,500,000 was mostly used up simply on staff costs (and 'administration/corporate expenses'). They estimate that these expenses will be about the same next quarter, which is in line with previous quarters. Revenue for the quarter was around five grand! Revenue for the marijuana crop has been stalled! I am not especially familiar with marijuana production/harvesting, but generally speaking, plants need to be harvested when they are ready for harvest. I do know that the good oil in marijuana is oil in the buds, and if left to flower and go to seed, the oils won't still be around to harvest in the same quantities. Someone else here hopefully knows a lot more than I do about it and can fill us in on how significant the reduction in yield is likely to be given x amount of delay in harvesting.

I'm guessing we will soon be hearing that due to licensing issues the crop could not be commercialised or properly commercialised, which is the excuse for the next capital raising. The only possible alternative to raising capital (or slashing staff costs, which seems...unlikely...) is the marijuana crop being harvested very quickly and sold for large profits. You can judge for yourself how likely that is...

I still expect a pump of some form coming before the inevitable next capital raising, but it seems to me most likely to take a dive tomorrow unless they have a rabbit to pull out of their hat before lunch.