Ann: Shareholder Newsletter, page-16

I am not sure we were reading the same short and sweet report. I think that DVH's language has been consistently more bullish (under duress?? perhaps, perhaps not, maybe too enthusiastic, who knows?) ... Are we now entering the 'over-promising' zone again?

On the back of Alexium’s refocus on higher margin business, 2018 is shaping up to be a year of unprecedented growth. In the month of January, Alexium realized one of its largest months of specialty chemical shipments. These sales are projected to increase as existing customers recover from seasonal slowdown and new customers quickly ramp up orders.

Th​

e early feedback we are getting is that 2018 will significantly outperform last year.​

Without quantifying the statement DVH can't be maligned with 'ramping' but these statements are still creating higher expectations with the faithful (I am faithful but sceptical none-the-less). What's unprecedented growth or significantly outperforming. It is all relative isn't it?

However it is this statement that caught my eye.

The funds raised allowed Alexium to demonstrate financial strength required to remain under late-stage consideration for opportunities with the bedding and flame retardant (FR) uniform markets.​

This statement is a walk back on what has previously been conveyed or inferred by directors to shareholders. They are not in-line to receive large contracts IMO ... 'imminently' ... the much loved phrase of previous/current directors. ​

I see the need to be able to demonstrate financial strength especially when, without the CR, they would have been trading in a negative equity situation (source last B/S statement with equity around $200k, give or take), however this is required to remain in contention for selection- not a precursor for imminent selection as touted in the AGM by GR. Certainly not a guarantee that's for sure and this is why in the 'forecasts' none of these contracts are taken into account - because they are still probably a fair way off.​

I still think they will get there, I am still a holder and I can agree that momentum seems to be positive within the business - I just won't get excited till I see pen on paper and some firm numbers in the books. nothing more nothing less. At that point the company can be benchmarked appropriately in my view.​

Cheers​

Charlie​