Latest News / Resolution at AGM, page-20

1)
The class actions are hinged off a false premise and therefore are highly unlikely to succeed . Firstly the Galderma contract was clearly not material to the company’s earnings ( past, current , or future ) so any purported termination of it was immaterial . The second is that it is arguable that the so called termination agreement had no legal affect due to the lack of authority residing in the people who apparently signed it , none of whom were directors . Had the board not foolishly reacted in the manner they did by effectively ratifying the termination they could have not only challenged the legal validity of the termination , but they may have sued Galderma for a flagrant breach of confidentiality under the original agreement ( this may still be open to the company ) . The only real class action that is likely to succeed is the one looming against the directors personally for their panicked and negligent response to a journalist alleging that the Galderma agreement had been terminated .

The irony is that we understand Galderma were at the time and remain interested in santalis’ skin dermatitis RX trials for eczema and psoriasis. Indian Sandalwood oil is far more effective against skin inflammation diseases such as eczema and psoriasis than bacterial infections such as acne . We believe Santalis still has considerable value ( several hundred million dollars ) which can be unlocked through either a trade sale or IPO in the next 18 months.

2)
Our business plan is hinged around long-term grower support, new major plantation investment and sales, together with substantial cost reductions and fresh equity. If we are successful the EGM brings the execution of this turnaround plan, the introduction of new capital and new customers forward by several months. We see this as a very positive development for ALL stakeholders.

This business needs new capital, but more importantly, it needs good management and leadership to ensure that the new capital is put to good use, and not simply squandered. Capital generally follows good management. That is why our business plan does not just focus on new capital, but new capital in conjunction with expert and experienced management that can deliver premium wood and oil sales, new plantation sales, well overdue corporate cost-cutting, and importantly the retention of grower support and wood supply.