Ann: Acquisition of LIFX and Share Placement, page-25

This acquisition would likely result in 63% dilution for existing shareholders - 1149m share base could get to 1797m, an addition of 648m shares. 226m now @8c to pay half of the cash consideration, the remaining half via debt to be raised. Then subsequently another CR to raise US$24.5m (A$33.8m) -that's another 422m shares if price at 8c as well. So the owners of LIFX would get about 36% of the enlarged share capital, so pretty much close to a reverse takeover!

US$51m acquisition cost for a business that has A$40m annual revenue , -$3.4m EBITDA. But the loss of the business is likely to be much higher than -$3.4m, could even be $5-8m loss.

Great for revenues, but cashflow is the issue with this acquisition, especially with higher financing cost from the $18m debt. I also question why a business with $40m revenues is still loss making? And while it has projected getting profitable soon, we have been there before. So I don't know if its a great buy a business @A$70m for a business yet to be profitable and not even cashflow positive!

As I mentioned, the winners will be the acquire.

So much for the Ohm business (failed!), LIFX is the new business of BUD!

Because its a lighting business, you should benchmark against VIV, as a comparable peer.

I can't comment about where I see LIFX future prospects but suffice to say that DM (he failed you guys miserably!) is no longer numero uno in BUD and I wont be surprise if there would be management changes subsequent to completion of the exercise. And that would be good news for you shareholders. Good luck folks!