All right,

I just took some of my time to look into the proposed sale of DL versus the costs of acquiring it and running it up to the proposed sale date.

Timeline

May 2016 - Denselight is acquired for rougly 14.7M$ CAD in shares which include the purchase price, settlements of oustanding debts and owed salaries to employees.

Operations of DL

According to the latest annual financial statement, Singapore operations generated a net loss of $3.1M in 2016, $5M in 2017 and $8M in 2018.

Total net loss over that timeframe amounted to $16.1M$ USD and let's convert it to CAD at a rate of 1.4 for the benefit of this exercice, which amount to 22.5M$ CAD in net loss.

Investments in upgrading DL from 2016 to 2018

According to the latest annual financial statement, the additions of property and equipment for the 3yrs amounted to $5.7M USD or at 1.4 exchange rate, 8M$ CAD.

Note that this is assuming that 100% of the capital expenditures were in fact made in Denselight which is probably not accurate as we may have updraged our lab equipement in USA and also at Sil Terra.

I will therefore use an estimate that 75% of the 8M$ CAD were dedicated to DL, i.e. 6M$ CAD.

Recap from May 2016 to December 2018:

• Acquisition in shares of DL, 14.7M$ CAD
• Operating DL, 22.5M$ CAD
• Capital expenditures at DL, 6M$ CAD

Sub-total, 43.2 M$ CAD

To that amount, we have to add the operating costs of DL for 2019. It is a guess that the 9 months from Jan to September 2019 of operations at DL would amount to a net loss contribution of 6.5$M CAD.

Therefore, the total costs of acquiring DL + operating it up to the proposed sale date would amount to approximately 49.7M$ CAD.

The proposed sale amount is in-between 36-40M$ CAD plus a potential earn-out. Assuming that 38M$CAD is the amount of the sale, this would mean that over the 3.4 years we owned Denselight, the net financial loss shareholders would amount to 12M$ CAD.

This is purely financial.

I believe that buying Denselight was the best option in relation our R&D efforts and that following the sale of DL we will have sufficient cash on hand and some partnerships in place to ramp-up the production.

For general discussion purpose, if anyone is interested to chime in

Rounded numbers off course.