Ann: Letter to Shareholders, page-70

definitely not an ideal situation..

I see several options unfolding as follows...

1) newcomers lose vote at agm (which is what I think will happen), then it's really up to the current board to find a value proposition. I am very confident this would be legitimately underway but they would normally only announce something once it had been locked in. the previous announcement about due diligence was forced by the entry of the new comers. how the stock performs following rejection of the new comers is entirely up to them. they will either try to exit straight away, hold and try to exit once a new direction is announced or keep trying and agitating. I think if a new product is announced by the current board they will have to give up and look elsewhere. I just hope any new potential partners are not scared off by a perceived risk that their asset will end up in the hands of the new comers (who know nothing about actual biotech).

in a way I almost hope the new comers dump their shares even if it torpedoes the share price temporarily. this would present a good buying opportunity for the rest of us, and they would be gone from the company.

even if they decide to hold for a while I would imagine they will remove their buy orders and we will see a drop in the share price back to the $3M market cap level (pretty standard for a biotech shell). but again I would almost welcome this as a buy opportunity.

for me, interference from the new comers not withstanding, I would be confident that the current board would easily have a new direction within the next few months of this year. I want them to take their time and get the right one too.

2) the new comers will get in. they will remove their current buy orders which have been artificially inflating the share price . the share price will drop back to 0.001 then they will perform a big capital raise to ensure their director fees for a couple of years until the whole thing dribbles to an end (like PVD, like CAD). I won't care at that point as I will be selling the minute I hear they have won (which I don't think they will).


I am really quite annoyed with the way this has played out to be honest (in particular at the newcomers). had they not burst into the scene there would have been cheap shares galore available to the rest of us and a good chance at a capital gain in the near/ medium term once a new direction was decided.

with the new comers, they may create concerns with any prospective new technology owners, have been a distraction for the current board and mean the possible behaviour of the stock to me is not as clear as it would otherwise have been.