questions for martis, page-38

Here is the quote from the CEO at the 2013 Ausbiotech Microcap Investing Presentation

From the 2:45 mark


"In terms of the product it is actually here and now, we are making agreements.

Earlier this year we announced a deal with a US based company, One World Laboratories.

Weve got two projects on foot with major global organisations, and just to set the scene, as you know I metioned 3 1/2 million being our costs.

Two of these companies that we are dealing with now, we are well advanced in projects with them.

Either one of those is likely to return us in excess of 10 million dollars per year.

So we have got a very scalable business, there is no need for us to increase our costs significantly beyond they are now, and yet returns are significant."




So lets say their costs increase by from $3.5 Million to $5 Million after closing both of these deals (this confirmation of deals is a matter of opinion and speculation hence the price rise?) the CEO states "Either one of these is likely to return us in excess of $10 Million dollars per year". (10 +10 = 20)

So 5/20 = 25%


Their product is their IP, they just need the agreements with the majors and collect the royalties to, as ds said years ago, 'clip the ticket'.

I found this the hardest thing to get my head around.

How can they keep increasing their receipts without commensurate increases in costs.......... what are they really selling?

Their Intellectual Property and know how.

Too good to be true?

I will wait and see, each to their own