CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

Conv Debt Balance Sheet Calculation Finalized

[6milli]

Thank you to Blue and to Pierre for making me scrutinize Note 9 yet again.

I failed to notice several line items within Note 9.

The line items are:

$20.8 million Embedded Conversion Options of Series IV, V and VI Convertible Debentures
$60.0 million Series III Convertible Debentures, FVTPL
$227.0 million Series IV, V and VI Convertible Debentures

If you add the $227 million + the $60 million = $287 million which is the amount stated on the balance sheet.

As Note 9 says, the embedded value of options is not included in the balance sheet amount.