A demo charge inflicts D6 wounds when detonated, and each wound on a siege target is then rolled on the batter chart. Does the demo charge count as being Strength 10 for the purposes of the Batter chart - ie would it cause 2 wounds instead of 1 on a roll of 2-5?

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No, it does not. it just causes D6 wounds, and for each wound, you roll once on the batter chart.