Ann: Quarterly Report and Appendix 4C, page-2

Burnt $4m last quarter, after revenue.

Providing revenue stays the same, will burn another $6m next quarter.

Not looking like being cash flow positive for some years.

Will need to raise significant amounts of cash for their stage 2 Australian expansion, to build state-of-the-art greenhouses and extraction facilities. Auscann raised an initial $30m just to commence this.

Hopefully, in order to minimise future dilution, they may get a strategic investor involved to aid with these costs.

If most things go to plan, then maybe in about 3 years they could be cash flow positive, and start reaping the benefits, but as expected, there will probably be continuing cash outflows (as expected) while the business is in the growth phase.

Gw