from the meeting

Borrowed this from some fine members at SS who attended the meeting. Appears less trash over there at the moment or they get banned.

I was at today's EGM and came away very confident the company can and will deliver over the coming months.

As previous posters have stated, there are still a lot of things that obviously cannot be released yet but some of the more significant details touched upon (as I interpreted them) were:

The intrinsic value study was not released and is ongoing at this point, though it was stated that the directors placed the value at $1.60 per share at the announcment of Ropren approval (July 07). A price of $1.28 is being used as the basis for the ratified Exec Rewards Scheme for 07/08.

Trials on a Vitamin K (currently administered to infants) and children's leukemia were underway. Vagif also believes there is significant potential re conditions of the spinal cord.

Ropren has an injectable form, though it was not mentioned if this would form part of treatment being sold to Russia or elsewhere.

A capital raising may be required shortly and it would probably be done in the form of a rights issue so as not to disadvantage shareholders.

Ropren production upscale was on schedule for Nov 07. Price will be confirmed at this time (as part of the manufacturing licence approval) but "wouldn't be too far south" of the price for non-Russian buyers (in the words of Charlie Pellegrino, though he also made reference to $1500-$6000 further on). It was also noted that the cost of the closest competitor to Ropren (whose title escapes me) costs $18k-$30k for an average 6 month course (and has a 70% discontinuance/failure rate due to negative side effects).

An independant director is being considered. Peter maintained that he serves the independant role but the company accepts that institutions and fund manager's may see this as a problem as they are currently sizing up the company (some were in attendance).

Tax advice being sought re implications of trading in Russia. To be known in the next few months according to Denis.

Charlie also allayed fears of sovereign risk, referring to both Russia's economic fundamentals (zero foreign debt, 160 million population, 1/3 of world's natural/precious resources) as well as plans to manufacture heavily outside of Russia.

Shareholders will get priority and discount on products.

AGM could be delayed until new year by which time a lot more information will be confirmed and released.

These were just my observations (do not cover everything) and my interpretations may differ to other attendess (if so, please pick me up). I strongly urge every shareholder to refer to the BRR when it becomes available, especially the Q&A at the end.

Hope this helps. We are in great hands in my view.


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Hi folks

Just returned from the EGM...
What a LONG day

Some quick thoughts on what people have posted:

1) Solagran WONT be taken over.
2) The BioA and chemo treatment for child leukemia is something that may start mid-October
3) The replacing vitamin K with Bioeffectives is a goal of Vagif's. Nothing happening yet.

The visit from the medico from the psychiatric hospital that conducted the alcoholics trials gave us a real insight into the potential results.
The professor from the Oncology institute that did the initial trials on stomach cancer/ulcer (cant remember.. its late) is due to come out to Oz in Oct/November.

The fascinating thing was the 4 hour meeting that the company had with the mayor of Tomsk, who has offered to expand the economic zone of Tomsk to include the areas around Solagran's prospective plant area, plus providing economic assistance and favourable taxation treatment for the company.

The company is also looking into a special economic zone in Finland as the first outside Russia manufacturing plant... and I also got the feeling that an aquisition for a Moscow facility is very close

I have no trouble with a rights issue, as i would imagine the manufacturing facilities they will look at purchasing will involve a script and cash payment issue (similar to SibEX).

Thats it from me atm..
and

Was at meeting and came away very positive

Much was as represented by release and previous posters

Just a couple of points

Corperate governance issues (independant directors)
Indicated that they have taken the issues on board and are looking at changes in the future.
- No changes additions at this time
- They felt independant dir (independant from solamind) covered
- No great issue in talks with funds brokers ect


They feel they are getting closer to an overall understanding of operation of the substances but we are not going to get the details anytime soon. Will not be giving any free goals.
Mentioned that the Japanese were running an alcoholics trial but Vagif said something about them using the wrong enzimes.

$1.60 mentioned was not their valuation but where they expected the market considering the SP when the document was created.

Marketing takes some strange turns because they are being approached by people from odd segments of the market that were well down the priority list (or yet to get on the list) but because the other people are approaching them and are therefore both open to the possible and willing to put in some effort themselves deals in these areas will continue to be closed ahead of other larger but more difficult areas.

Biggist limit to growth over the next few years is supply and this will continue to be a high priority for some years. But the plus side to this is we will be one of the few new pharms with total control and ownership of our supply lines.

Put takeover/buyout as extremely unlikly as cannot see Vagif especialy giving one iota of his research freedom. (He wants his place in history)


A couple of further points.

The recent visit by Professor Z was only touched on briefly, in that the prof wants to conduct further trialling through the Pastuer institute re H.Pylori. Not much else was given from memory.

Apart from hearing from Vagif himself (and doesn't he like to talk), I was most interested in hearing what Charles P had to say, as I think at least our short-term aspirations lie with his ability to get production sorted. The more he spoke the more confident I became in him to be able to deliver. Time will only tell though I suppose.

He goes back to Russia in October to oversee the November production upscale roll-out. As I posted earlier he seemed very confident that everything was on track and that final pricing "wouldn't be too far south" of the price applied to non-Russian buyers. I would be interested in others interpretations of this.

Another thing he said that caught my attention was the link formed with another young Russian professor who specialises in writing up product submissions for the FDA. He has been successful in his two attempts for other (non Solagran) products and is very highly regarded (not sure if his name was quoted).

BRR interview coming your way soon. :)