note to long term holders, page-51

My understanding of the situation is as follows.

Following the sell down from an apparent ex director iSonea had a new board of directors that needed new capital. Ideally they could have raised a lot higher (they were @ 1.3/4 for a while there).

As a consequence the stock got belted down to 0.5c or so in a short period all the while needing new capital to release the mobile range. There were 2 options. 1) Head to the open market for capital - imo too risky as holders were very frustrated with current play or 2) Seek a fund that was willing to pump in the $$ at short notice.

This resulted in Bergen entering the picture. They at the time were a lifeline. The stock as a result suffered significant dilution.

As I understand the scene they are not happy with the way events unfolded and wont be using Bergen again. I would think this to be a wise move.

Currently we are in a interesting space. The company has never been in a better place as far as business goes. The ace in the hat imo is the Qualcomm venture fund for up and coming exciting bio's in the i Health arena. This is ISN.\

If this can be the source of the funding this will go a significant way to ISN achieving what some of us shareholders believe is possible. Recall the recent addition to the board...

At the end of the day ISN is really a new company with a fresh face, direction and board. They have canny management who have demonstrated in recent times their aggressive marketing technique (x Square/ Soundasthma). Covered with 20 patents wrapping the ideas I think shareholders are well placed to benefit from a myriad of events here that are all coming together.

Coupled with an increasing apetite for risk over the next few years there is no doubt that iHealth stocks with the business acumen that ISN currently has at the helm will be highly sought after.

It has been a spectacular fall coupled by many events but the climb to summit is getting closer by the day I feel.