Ann: Updated Appendix 4C, page-45

Biotron's Funding Requirements

• Biotron needs to raise capital to fund future trials.
• These trials are essential to demonstrate results that could attract potential partners or investors.

Trial Cost Estimation

• Michelle Miller estimates that a trial would cost between $1.5M to $2.5M.
• To stay on the safe side, let's assume they aim to raise $2M to cover costs.

Capital Raise via Share Issuance

• If they were to raise $2M at a share price of 1 cent (0.01 AUD):
  • Number of new shares issued = $2,000,000 ÷ 0.01 = 200 million shares
  • This would significantly dilute the existing shareholders.

Dilution Concerns

• If Biotron proceeds with this capital raise:
  • The total shares on issue will increase by 200 million.
  • Existing shareholders will see their ownership percentage reduced.
  • The company may face negative market perception due to dilution.

Alternative Approaches

1. Higher Share Price Offering:

   • If Biotron can demonstrate value or secure early interest, they may be able to issue shares at a higher price (e.g., 2c instead of 1c), reducing dilution.

2. Partner Funding:

   • Instead of issuing more shares, Biotron could seek strategic partnerships where a partner co-funds the trial.

3. Grant or Government Funding:

   • Biotech grants or R&D incentives may be available to offset costs.

4. Convertible Notes:

   • A convertible note structure could attract investors without immediate dilution.

Management has no idea of what to do, so most likely, none of the above will have crossed their minds, and at best, a cheap takeover could occur, and SHs get a big thank you for supporting the Lifestyle of MnM and PN