Raising the necessary funds for the Singapore fractionation...

Raising the necessary funds for the Singapore fractionation facility was always a problem. John M has forthrightly acknowledged the conundrum of how a $7M market cap company could have a subsidiary valued six times that figure. Spinning out PrIME Biologics as a new company seeks to side step that objection.

Management has worked really hard to drum up stake holders and partners. Previously, third party promises were made and not kept regarding investors in Singapore, then an Indian prospective off-taker (ABS Novacell) wanted a JV but again could not provide the immediate cash, so that now we are forced back to smaller scale Singaporeans and Australians in an ASX float. The staged time frameworks have been determined long ago but could not be anchored to a point on the calendar until the funding becomes definite. The float makes that a realistic outcome.

Today's announcement does not precisely state how much new cash will be injected as a result of the IPO. It appears as if three stakes of 10% could be issued: A second stake to Luye Pharma, one to public in the IPO, and one to "Investor Group" which sounds as if it could be a syndicate of Singapore investors already lined up. If PrIME Bio is to retain its designated value of A$46M, the IPO issue price looks to be $1.00 per share (based on present 112M NSP shares on issue) which would then raise $13.8M, enough to complete the plant installation.

The combination of the NuSep holding and NuSep shareholders would still hold a controlling majority of 60% of shares.

It was an excellent move to install the pilot scale PrIME unit into the facility a few weeks ago, both from the PR perspective ("We can right now produce plasma in Singapore!") and to gain access to the Sing Govt loan. All good moves on the part of management.

Juke