Ann: Return of Capital Update, page-12

mrpaul - MEL traded for the first time without an entitlement to the 2.5c capital return. In effect we went from cash backing of 7.1c per share to 4.6 (with 2.5c cash in hand for the holder).

As such, we went from being valued at 0.3 cents below cash backing (based off yesterday's close of 6.8c), to 0.5 cents over cash backing (5.1 close today).

Essentially we 'should' have gone down 2.5c (value of cap return), but only went down 1.7 - effectively you are 0.8 cents per share better off than yesterday.

Of note is the fact that we bottomed at 4.6c today - the new cash backing - but rose again and looked quite strong at close around the 5.0c mark. This is the first time that we have exceeded cash backing since the settlement hit the MEL bank account. Perhaps Biouvac Peak is being recognised, or the market is acknowledging that BYE has two months to draw down the convertible note (effectively around 14% interest for 8 million) and that the MEL quarterly projected this whole amount as an outgoing in the current quarter (i.e expecting that the whole amount will be drawn before end of December).

Personally, I'm hoping that a deal is in the works.