Meet & Greet, page-9

Hi all, It was a great meeting & as suspected there has been lot's going on in the background. General consensus between them is that this is a great deal to create the engine for the company that will help build the seperate pillars to profitability. NS was a prime business for purchase by a private equity company however Danny was looking for a way to grow the business further without losing it & hence when approached by OBJ was excited about the future with the BG side & new vitamin patches so it was win/win for both sides & why we are getting NS for this price rather than much more.

- The deal was instigated before the last AGM so this isn't something they have just come up with...they have been working on it for a long time
- First product under Pauls gizmo division will be for hair with a possible release around March although could be a little later
- John Palermo's finders fee will be paid 50/50 OBJ & NS. If it was PE buying in the fee would be up to 5%
- The loans to Danny will not be repaid but taken off the balance sheet after listing & taken as dividends which he will need to pay a s@#t load of tax on. These were set up that way as a private company & not unusual as a way of minimising his tax in the interim
- If a private equity company wanted to buy NS they would be paying 150m if based on the standard PE ratio of 15 where we are getting it for at a ratio of 5
- NS has already been working with OBJ in making vitamin patches which could prove very lucrative
- NS also has connections with networks in the US
- NS has 18 new products to add to it's current network of resellers
- NS take a 5m haircut off the end price for every 1m less than the forecasted revenue
- Parramatta property has a valuation of 13m we were getting it for 12m
- Bodyguard will be creating sports tapes/patches which will be promoted by the All Blacks, NRL Roosters, Perth Wildcats et al
- SS advised that if each one of the 6000 resellers sold $1,000 worth of bodyguard products in the ANZ networks then that would be 6m on the bottom line & very achievable
'- There seemed much enthusiasm for the patch with little green Pharma so Im assuming testing there is going well
- P&G have been on the phone to directors after learning about the deal
- Hopefully see an announcement today re the adjusted pricing (or at least I read it that way)

This is what they have been planning for over 12 months & hence I believe we really need to give them a go & what they said made perfect sense. Tony & Steven will be writing big cheques for more shares in the CR as they want to make money! They aren't interested in wages...they want a position which will pay them long term so I'm happy that they are putting in.

GLTA although now I don't think luck will have much to do with it......I'm convinced these guys will do well so back to a buy sentiment.