Ann: Board Restructure , page-5

Oh dear…..
Not looking too good for CAQ. I think they are about to run out of money, or have massive dilution from lower and lower priced share issues just to stay afloat.

There are a couple of reasons why things seem to be so dire.

NO MARKET FOR PRODUCT?
At Sept 2011 CAQ said “Eco-Star Ready to Cook meal range released into WA supermarkets and CAQ ‘now suppyling’ high quality seafood into the booming WA mining industry”. Yet, all this translates to 265k revenue for the first HY and around 112 k for the March Quarter, sales have actually gone DOWN.

The biggest worry for CAQ is- is there a market for their products at a profitable price? Apparently not: as sales are stagnant. If they can’t turn a buck in the premium Aussie market how can they do it the competitive Asian market.

UNABLE TO FINISH PROJECTS?
CAQ are specialists at unfinished projects!

Phuket Thailand production facility- no intersegment revenue in the first HY – despite allegedly being “in production of Barramundi” mid 2011.

TRG Teregganu large scale Malaysian JV resurrected mid 2011 now trade receivables and buildings written off and “awaiting a decision about the future of this project”.

Singapore production facility (2011) disappeared

South African JV proposal (2011) still not delivered

ASSAR Fisheries Sarawak JV (2008)- disappeared

Aquaculture facility in Las Vegas (2007)- disappeared

Pilot project at Bourgas Bulgaria (2007)- disappeared

JV facility in Tolbert The Netherlands (2007)- disappeared

Centreville, Missouri fish hatchery and grow out facility (2006)- disappeared

Dixie Fish Farms, hatchery Mississippi (2006)- disappeared

Now they are talking about continuing “to seek new opportunities”. Aare they crazy??

LA JOLLA KISS OF DEATH?
They have gone away from the La Jolla funding alternative thank goodness!! Because it’s the La Jolla kiss of death for companies like EDE. Neverthless La Jolla still have a LOT of shares left to convert which they can sell at: “Conversion price of first note 80% of the average of the 3 lowest Volume Weighted Average Prices during the 21 trading days prior to investor’s election to convert” which will further depress prices.

To add insult to injury CAQ paid them a 65k default fee and accelerated interest expense of 467k. Having struggled to raise just 400k at 2c to a new investor- what price the next raising??

Good luck holders, I hope SOMETHING comes good for you.