GrizzlyAu, thanks for getting that data on “Distribution of...

GrizzlyAu, thanks for getting that data on “Distribution of Holders”, I am one of the 450 who hold over 100k shares - I own 505k.

I generally don’t make money with emotional decisions so here I’d like to recap some observations/thoughts and determine if there is an ‘investment case’. I would very much welcome Expert Comments from this forum.

7 year Interest Free loans to Directors
- Issue prices of Incentive Shares $ 0.05 cents.

- 15,000,000 Options issued to Argonaut Securities with a Strike Price of $ 0.07 cents.

Appendix 4E
- Net Tangible Assets $ 0.03
- It seems they went from $800k loss in 2015 to $600k profit in 2016 - a turnaround of $1.4m

The hand wringing chants that Gage Roads are about to become insolvent abated when GRB release their last financial report - I take that as the ‘market’ determining that GRB is most likely a viable Company.

Getting rid of Woolworths is a positive and the reduced debt burden will definitely benefit the Company. I really hope they show initiative and reduce the debt load further in the future - I much prefer Companies with low/no debt.

4 New Shares to be issued at $ 0.025 for every 5 Shares owned ~ 80% more shares.

- Maybe trade at $ 0.03 for a while after new shares issued ? ? ?

"2015 Basic and dilute profit per shares $ 0.18" - very roughly translates to $ 0.08 per share after the new share allocation (Half-Year to 31/12/15).

Summary:

Gage Roads seems to have turned the corner on profitability and appear to be putting in place a sensible plan of capital and employee allocation to expand sales and increase profits.

GRB seem to be getting momentum in the distribution channels, particularly to the crucial East Coast market.

Lastly a ‘what if . . . (Glass half-full) ’

What if they . . . continue to get good sales traction, maximise production on existing equipment and start booking $2m+ Net Profit after tax in the next half-year ?

Argonaut are hoping after this share placement the SP will go from $ 0.025 to North of $ 0.07.

Directors Incentive Shares come in the money over $ 0.05, for sure they hope the SP will be North as well.

I am hoping SP will $ 0.10 or even higher over the next two years.

I live in Ireland, so can’t participate in the New Share offering, anything I do has to be on Market.

Thoughts ?