Hi Stayer,Valid points those. in terms of Adistem, I believe...

Hi Stayer,

Valid points those.

in terms of Adistem, I believe Medivet signed an exclusive licensing agreement, as result of the medivet acquisition, Adistem will hold 416k of post consolidated MLA shares in escrow as well as ongoing royalties - I couldn't find how much this amounted to or how long this arangement was locked in for. Can only assume Adistem were comfortable becoming MLA holders(with 12-24mth escrow terms).


I agree entirely on a premuim being paid based on the provided fundamentals. I'm awaiting further info on this, but am guessing that in line with the increase in good PR and proliferation of clinics offering the procedure, that the past few months have been good enough to justify the price tag (also the directors hold a decent stake, so they too will be diluted).


Margins are reasonable on their OEM business, and in the latest Annual report plans have been proposed to reduce their staffing and trim costs:

"As a consequence of the 2013 performance, your Board has embarked on a review of operations and, as a result has initiated headcount and general overhead reductions in order to reduce cost and to streamline areas of the business. The benefits of this review and the actions taken, will become evident in future reporting periods, with over $1 million in recurring annualised expenditure having being removed from the business."

Also, the Directors are also looking at the potential sale of Clements, which has been underperforming:

"While the Company did post a significant net loss for the financial year, a considerable proportion of this loss can be attributable to both the acquisition of Medivet Pty Ltd, in particular costs associated with due diligence and capital raising, and the impairment write-down taken on the Clements business. In relation to the latter, we are in discussion with a number of interested parties on the potential sale of this business unit."