thoughts on announcement, page-6

Discussion and analysis of results
The 2007/ 2008 financial year was a significant one for the Company. At the start of the year the Company had settled litigation with Ad’Tel Digital Systems Group Pty Ltd and was examining investment opportunities of businesses complementary to its acquisition of Lowell Capital Limited. The Company subsequently faced difficulties with its cash position, and this lead to the Company being suspended from the ASX Official List for a period.
The Company then negotiated a mandate with Cygnet Capital Pty Ltd (Cygnet) which resulted in funding being arranged. During the year, Cygnet raised $2,750,000 on behalf of the Company. These funds were utilised to settle a disputed amount with the Australian Taxation Office, pay outstanding creditors and provided additional working capital. At 30 June 2008, the Company was in a much stronger financial position and the Consolidated Entity had $2,044,040 cash at bank.
As a result of the above, together with the events occurring after balance date, the Directors believe the Company is in a strong and stable position to expand and grow its current operations and to seek other business opportunities.
The significant reversal in the Company’s outlook is very pleasing and the Board would like to take this opportunity to thank Cygnet for their services in making this happen.
The Company’s only operating business is run through its wholly owned subsidiary, Lowell Capital Limited (Lowell) (a Licensed Responsible Entity (RE) operating under an Australian Financial Services License (AFSL) (AFSL No. – 241175).
Lowell’s main business is the provision of an RE service to the Lowell Resources Fund, a unit trust. It also provides other financial services, including acting as a trustee for convertible note holders of a small Australian finance company.
Lowell earns a management and a performance fee from the Lowell Resources Fund, and small retainers from two other clients. The management of the Lowell Resources Fund is outsourced.
Lowell performed to expectations during the period.
The Board is currently considering a number of potential investment opportunities in conjunction with Cygnet and will report further to shareholders as soon as an appropriate opportunity has been identified that offers value and sits within the resources/energy focus of the Company and Lowell.