Well, the AGM was very interesting and most enjoyable. The...

Well, the AGM was very interesting and most enjoyable. The auditor said, as he hastened to escape, "I?ve never heard so many questions asked at the AGM of any company!" (None of the questions were directed at him.)

The formal presentation will be available on Monday. It?s hard to know how much to say in advance now.

The two leading lights, John Manusu and Hari Nair, were over the Moon in their exuberance. This was the best year they ever had (a powerful statement). Their ebullience was quite remarkable. Clearly, they can see the clouds parting for Nusep. There is now no debt, funding has been raised for the next diversification of the business into Asia, and each segment is now in focussed control and on the point of delivering significant revenues. Starting phases do take a little time to build up momentum. I must say that it is very impressive to see so many diverse strands of the business all interconnected via the Nusep bio separations technology.

The SingaPharm business. In years past NSP (as GDP) had tried to sell the blood fractionating technology to the 5 world class plasma processors with a devastating non success. Even though the Nusep membrane separations was acknowledged to be a superior technique the big companies could not adopt because they had $100Ms already invested in traditional instrumentation and any new technique would have to go through a validation process that could take a few years. This time Nusep is directly entering the manufacturing market itself for the Asian region, including India and China. However it intends to focus on the niche market of processing smaller volumes of plasma (20 to 10 000 litres) for smaller countries which would then have access to first world standards. One advantage to SingaPharm is that it will have access to plasma from those small countries that probably would not be collected under FDA/TGA guidelines and which the incumbent fractionators will not process. It should be noted that the Nusep separations technology can, in one step, remove viruses, bacteria, etc.

The time period for the sale of first plasma, and there after owning 51% interest in SingaPharma, is only 18 months. Another key point to note us that all the separation membranes that will be used will be manufactured at the Nusep premises at Lane Cove. It seems an excellent business model.

The fund raising in the form of a placement through Stonebridge is completed. There will be no request for funds from shareholders. The placement of 8.8M shares is more than sufficient to pay for the instalment on SingaPharm.

Stonebridge has also produced a research report (confidential but briefly viewed) in which they arrive at a DCF valuation of 53c /share using a discount rate of 15%. This includes the acquisition of the SingaPharm business.

Many other things were discussed at length. Can add later. It was an excellent meeting.

Juke