CAI (ASX) An email I sent and no reply :(

Originally posted by nathanblack ↑

Great email and idea. Maybe they are slow getting back to you because they will meet and discuss before replying?

I think you hit nail on the head. The tax losses are by far the most valuable asset. If the restructure goes ahead and we become DDZ then the tax losses aren't useable by us. So selling them would be benefitial.

Our main assets would be:
1. Tax losses - only useable in related business.
2. Thermalife - not profitable over 20years.
3. manufacturing process - cheap but inferior and unstable product.
4. Tripeptofen - Promising but we cant find it and reserach has stopped.
5. Inventory - Production ceased and most batches are nearing expiry.

Obviously the seniority of the convertible notes/debt is the biggest obsticle in any restructure/take over/merger. Especially when the majority of notes are also in dispute and unlikely to compromise beyond a certain point. But if they get full face value its a no brainer. If they get 50% you'd think they'd take that given the likelyhood of getting nothing under current circumstances.

I think you can find a buyer for Thermalife and it can be profitable. It just cant be an asx listed buyer. Its a bouttique product with bouttique volumes and margins. It is best suited to private company with low overheads and contract production every 6months to top up inventory.

Their is no goodwill payment for the PNO brand as it is nothing. And similar for Thermalife. The brand is small and worthless. You get the name for free when you buy the company and the buyer might do away with it anyway and rebrand.

Its obvious why Anthony wants restructure. He stands to lose the least under that scenario. And the creditors are basically working for him as largest creditor. But I'm sure they are open to reasonable offers for the business or parts of.

I really dont know how it got this bad. Obviously losses aren't sustainable and it gets harder and harder to raise capital which is why our cap raisings started to fail. Then we cut all spending and lived of internal funding. But that isn't even a bandaid solution as every quarterly kept highlighting that basically we were on life support and spending nothing on R&D/Production/Marketing. So we were never going to dig out of the hole.

Anthony didn't push us into administation. He just made it come a few months earlier. We were always going there with or without him.

What really needed to happen was a share consoldiation and large write down. They could have done 50 to one. So instead of 0.1c the shares are 5c. Then raise at 2.5c and they'd have buyers. Could even find underwriters on those terms with some nice in the money options to sweeten the deal.

Instead they let it go over a year without a successful CR. Two failed attempts that rang alarm bells and locked the sp to 0.1c with no bids. And the reaction was to close ranks and pump in trivial amount of money from own pocket which he got back as salary.

Hard decisions needed to be made. New management was one option which sadly has had to happen now with Johns passing. But it was too late. The notes needed to be dealt with in a permanent way. Either by converting them and diluting everyone, or as a minimum they needed to be renegotiated to be long term instead of maturing every 12months which equated to every few months since their were several series of notes with different maturity dates.

OBJ had more room to move, but when their CR failed "due to Boston bombing"., they were quick to appoint Baker and Young. And the CR went ahead and succeeded. The rest is history. They aren't perfect. They've been up and down and are probably lower than they should be. But they did the failed CR better than PNO. And their business model of letting others fund research was better and kept costs low and less reliance on CR.

PNO often talked the talked but never walked the walk. Some feel that way about OBJ. The difference is even if you think nothing will come of any of the OBJ partnerships, then it still cost them nothing. With PNO we anounce things like the distribution agreement which WE paid for. Then when it fails we terminate it. WE announce partnerships with universities and others to locate Tripeptofen but we fund it. We announce being close to USA deal but no update and nothing eventuates from it.

Clearly it was just talk to try pump the sp and their was a couple ocasions were volume appeared at 0.1c and even the odd nibble at 0.2c and MLPH had some action too. But artificially pumping the sp was never going to get a cr off the ground. Maybe 5years ago. But not 2015. The market wised up.

We were one deal away from digging out of a hole. But we will never know how near or far that deal was. Their was always smoke and we never saw the fire. Rather than searching for a company making sales/licensing deal they should have focused on research deals. If we cut cost via a research deal and actually found something concrete we'd have a viable and sellable asset.

Its definitely not over for the product or the company. But things will never be the same. We are a nice shell now and have no MD. So ripe for a reverese take over.

Expand

'So ripe for a reverese take over.'

You are both probably right that most OBJ Shareholders would not be interested.......but here's a thought:

What if BodyGuard trials and data is a flying success and & P&G & OBJ require it to operate as it's own entity.......and perhaps needed a shell company for a reverse takeover? PNO just may tick a few important boxes. P&G have the resources to re-brand Thermalife, distribution power to guarantee successful market penetration, find the magic Tripeptofen ingredient with a little research grunt dollars and in the process utilise the tax credits. It's not as silly as it sounds. And it's about time that Voltaren had a decent competitor product that demonstrated far less side-effects. Theoretically, OBJ & PNO Shareholders could receive company value proportional shares issued, with P&G as the major Shareholder.

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Last updated 15.06pm 29/05/2024 ?

'So ripe for a reverese take over.' You are both probably right...

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