Ann: Response to ASX Query Letter, page-13

• The FGF/Acudeen deal was facilitated by Blockchain Global and Sam Lee.

• Acudeen will buy back the ACU tokens from FGF, which is 20% of all allocated digital currency tokens.
• FGF are still owed US$1 million activation fee or 6.25% success fee from Acudeen

• FGF want out of the ACU deal - "In the event that ACU buys back FGF’s ACU tokens, FGF intends to seek theagreement of ACU and Sam Lee to terminate any ongoing obligations of FGF to provide facilitation services to ACU as well as any rights of FGF to be entitled to the US$250,000 activation fee or the 6.25% commission under the ACU."

• Essentially, FGF consider ACU tokens as being worthless and blames a "lack of liquidity in the market" as the reason why they weren't able to sell the ACU tokens, convert to AUD and record a profit.
• "Some ACU tokens have been converted into other tokens across the holdings of all parties to the ACU agreement(being ACU, Sam Lee and FGF)."

An unfortunate turn of events, however, FGF will still bank an activation fee or success fees from Acudeen under the agreement.