Ann: Trading Halt, page-71

That was unexpected.... They need funds to expand.... I don't know, I would have waited a quarter if they really wanted to expand. Reason being that they are currently trialling with Novacare for homecare market. After the trial, it would be much easier to raise saying that we are expanding. That's because grant money is not coming in Q3 2020, Q4 2020, Q1 2021. Maybe it's to take advantage of raising now as they anticipate troubling market conditions in the upcoming weeks. If that's true then the cap raise would help shareholders overcome most of the volatility. There definitely needs to be an explanation on what their outcomes are with the cap raise.

The raise will effectively put a floor on a 11c share price. Getting it below mean heavy selling, I doubt we will see the price below 11cents. Those who got in under 11cents should open a bottle of champagne. $10M raise means the cash balance would be around $16M. If they are scaling that means they are planning to burn $4M for 3 quarters before the grant funding kicks back. I hope they use this funding to enhance product and increase sales & marketing to spend less on consultants. My targets would be to increase number of care homes in UK, accelerate the homecare rollout and spend resources on getting the Canadian regulatory clearance.

If that doesn't happen then Adam Davey should be kicked out of the board. I get why he is there, to offer capital markets certainty. However, Painchek is covered by brokers. I don't get why Painchek wants Canacord & Patterson involved in a board level.