Ann: Shareholder Newsletter, page-17

Hmm I think its great Dirk is so honest I knew there would be some flak regards the margin pressure comment but I tend to disagree that the quarter is going to be a real fizzer. Firstly the newsletter states "margin pressure" in some PCM (note it doesnt say all). It also doesnt say anything about lack of sales just margin pressure different things IMO and as these snippets from various announcements released over the quarter show they havent said we have had lack of sales.

If you are going to believe Dirk when he says margin pressure then why dont people believe what he says with other comments, you cant just pick out the negatives and then discard the other positives and information he has shared IMO anyway these are just a few snippets from the last few months havent included all the comments there is plenty more and IMO if sales had been lousy the Dirk would of said he has been upfront about it in the past anyway a few comments to back my understanding below

The news letter in Feb states

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.

From the half yearly
Alexium’s relationship with pillow supplier Pegasus continues to strengthen. Initial shipments for full-scale production commenced at the end of the half-year and Alexium has received significant ramp-up in order quantity since the beginning of Q3 FY18. Additional increases in order quantity and volume are anticipated as Pegasus’ orders and placements continue to grow.

From investor presentation
Movement away from low margin sales into H2, resulting in GPM increase from 1% to 25% •
Shipments to new customers up 50,000 lbs per month, representing over $500k in Q2 FY18
Several customers still in scale-up, representing future upside potential
Seasonality in bedding began to return to normal at the end of Q2

from January 4c

• In addition to this uptick in new business, customers that were acquired in FY2017 whose order quantities were impacted by the seasonal fluctuations, Alexium forecasts a completerebound inthenext quarter to higher order volumes. • This rebound, when considered in conjunction with the new customers who purchased over 100,000 pounds of chemistry during this period, will help drive record high volumes in Q3 FY2018. • Volumes to new customers have continued to rise throughout the quarter as several of these customers are still in various stages of inventory scale-up. • December volumes are already on pace to beat Q2 totals to these customers and represent an opportunity for further increases in sales in Q3 FY2018.