Ann: Trading Halt, page-38

Good morning all.

This is a question to all of the loyalty option holders (FGROC).

I have had discussions with another shareholder where we have different views on asking option holders if they would be interested in exercising early.

By my calculations FGR had enough cash to last until well after the NICNAS approval was granted and the first sales can commence.

Would you preferred to exercise your options early rather than see another capital raising?

With the company expecting to be cash flow positive by the end of the year, I would, I thought the whole point of buying the loyalty options was to help the company into the future.

The way I see it, it is no different to buying shares on market, both have risks. I exercised a large amount of FGROB's only to see a significant drop in the SP soon after. There is also a 33% premium to the options after august if they are not exercised.

If options holders needed to sell shares to exercise the options, or if they had cash on hand, wouldn't this have a similar result to the existing CR.

On the other side of the coin. it really depends on who Foster Stockbroking attracts, maybe if these new investors like what they see, they maybe willing to continue buying on market,

It also depends on how much cash FGR has on hand. I am expecting 2 - 2.5mil with the R&D rebate. If this is lower it might explain why we are seeing a raise prior to the NICNAS approval, or if the company has expansion / IP development plans.

We will find out when the issued capital notice arrives.