You are right that the company had to make this announcement. Otherwise, option holders might complain that they didn't get a chance to participate.
I agree with you that SpermSep is a VERY IMPORTANT technology; however I think you are missing an important point.
The 35c options were issued at about a 50% premium to the stock price at the time. The purpose of these and the oversubscription from the rights issue was to fund SpermSep. Those options are now virtually worthless. This is not the first fund raising designed for this purpose. In deed, going all the way back to the initial capital raising for NuSep, shareholders were asked to fund SpermSep. In the prospectus for IPO -
it was stated on page 6 "NuSep will continue the development and clinical trials of the Sperm Sorter project previously developed under Life Therapeutics' Life BioProcessing Division" and, on page 13 "It is expected the Sperm Sorter will be launched commercially in 2009". Those statements were 5 years ago.
Now, once again, shareholders are being asked to fund SpermSep via options at a 50% premium to the share price. What do you think are the chances that the share price will be 50%+ higher by next year? And if it is, will the money be sent to SpermSep or will it go elsewhere as before?
BTW, at nusepboardreform.info, it is stated "NuSep has achieved some remarkable milestones in the past. It owns valuable intellectual property with the acquisition of patents and know-how funded by shareholders, some of it purchased from NuSep's predecessors, and some developed in-house. The potential of the technical and scientific achievements of NuSep and its personnel is substantial." And indeed we do. Spermsep technology goes all the way back to Gradipore days. It has been funded again and again, but the money has never seemed to arrive at the product or the product to market.
I agree that this is an important tech. We'll need some more bench strength to pull any of this stuff off. I agree with Kosenar that the proposed non-exec directors will help get this thing going to full strength, with SpermSep, Prime Biologics(SingaPharm) BioInquire and the Gels Business. Reading this, I would be sure the current directors will also support it. These guys seem to have great credentials in both biotech and finance, which is just what we need.
If we don't get more strength, next year, i fear we'll be in a bigger hole if not dead.
I would encourage all shareholders to read the information at nusepboardreform.info and contact the sponsors. When I did, they have a very good argument to boost our company board and share value. And let's face it, that's what we all want.
Kosenar, Jukes and other readers have you contacted the sponsors of nusepboardreform.info? What were your thoughts?
MEM Price at posting:
11.0¢ Sentiment: Hold Disclosure: Held
