Ann: Incannex Presentation - Dr Sud Agarwal - CMO, page-49

I don’t have any issue with what you’ve stated, and I’m happy to address your questions.

Cannvalate (which was founded by Dr Sud Agarwal, now IHL’s CMO) committed in excess of $3 million to the current four clinical trials. IHL’s expenditure is capped at a maximum of $80,000 plus GST per trial. The percentage paid by Cannvalate is irrelevant IMO, it may be more or less than 90% but what is important is IHL have a capped expense and retain 100% of the IP.

IHL have some revenue from dental devices and will naturally improve on this front with CBD oil sales under the SAS. While the company is probably not far off break-even, I agree with you that successful biotechs are more likely acquired and that’s exactly why I’m invested.

IMO the current revenue is only important from the perspective of covering some of the company’s overheads. Otherwise it’s irrelevant, and possibly a curse because of the discussion that evolves around whether the revenue is growing and by how much. I couldn’t give two hoots if they made zero revenue.

Investors will be rewarded by the IP generation not small scale revenues. The key is creating IP in >$1 billion markets that have no competitive pharmaceutical options. These products stand a good chance of being adopted by the PBS and then (at least IMO) you will see big pharma write a big cheque. This is an age tested paradigm with a predictable exit.

The most interesting observation is the clinical opportunities in Australia under the SAS which very few investors appear to have worked out. And that gem is something I won’t be sharing atm but it’s information that everyone can find with some time and effort... DYOR.