General Discussion, page-56

Legman, I am guessing here. I think Crown Ascent is the investor, and Mr Zheng, by virtue of his major interest in the company has to declare his involvement.

"Cashed up to go again" - maybe, who knows.

I saw Crown as a white knight when cash was needed.

If you recall, in early 2019, LCK was struggling to get its Rights Issue over the line. Crown popped up during this period and gave some stability to the programme, with $3.0 million.

At the time I saw this as a blessing and was not overly concerned about the details of the Notes.

Below is a small part the terms stated in your proffered post.



Above plus 6% establishment fee.

Now what did this mean in terms of financing. See table below.



On 3 April 2019 LCK issued these 33,360,426 shares to Crown.

33,360,426 for $3 million. That is not 12 cents per share but ($3 mil/33,360,426) 9 cents per share.

That is pathetic, particularly when LCK is trying to get 12 cent a share out of shareholders.

Con Notes and a need for cash is not a good combination from a shareholder's point of view. Dilution extreme.

All this happened in the space of about 6 weeks. The cards fell in favour of Crown and they got these shares when the share price was around 30 cents.

Prior to this, Crown held 12,470,921 shares, making it up to 45,831,347 (12,470,921 + 33,360,426).

As of 25 November 2022, they have only 8,476,964 shares. Nothing to write home about. Who knows where they went.

I have to ask, is this the type of thing shareholders want for say $50 million of pre-Fid funding.

Dilution would be horrendous, and I think it would retard any increase in the share price.

This is all a bit disjointed, but you should get the message as to why I am not in favour of Con Notes in general.

Just my thoughts. Please correct me as necessary. I would like to hear alternative views as to the application on Con Notes on pre-Fid funding.

J L.