GR re New Chair, EGM and C/N, page-10

The Company does not have the option of paying out the loan in shares. It only has the option of reducing the loan if it wishes via cash payments. To do so would incur an additional cost (a Success Fee – see Sections 8 and 9 of Annexure).

GPB can only convert the loan to shares in the unlikely circumstance that a ‘change of control transaction’ occurs (a hostile takeover – Section 7).

Listing Rule 7.1 allows any company to issue an additional 15% of its shares without prior approval. This is intended to provide a company with the ability to raise required cash urgently without needing to resort to the delays of organising an EGM and obtaining shareholder approval first. The Company is seeking to retain this flexibility.