Ann: Mesoblast Option to Issue up to US$50m Convertible Notes, page-86

Hi Reg,

the 'message' is aimed at everyone.

It says, 'Mesoblast will make the transition through FDA marketing approval without faltering in its stride'. It's a good message, eh!

To those gambling on filling a short-sold position with an assumed 'urgent cap raise' prior to an initial commercial launch, it says 'your assumptions were wrong. Think again because significant money commitments are available to MSB right now off-market'.

To commercial financiers it says, 'don't think you can gouge us for usurious rates on inflexible terms. If you want a piece of our arms length financing business, you'll need to sharpen your pencils'.

To those instos thinking they can just climb onto the share register at a discount after approval, when the price usually has to tank to reflect analysts gloomy forecast of the commercial reality of funding biotech manufacturing operations from scratch after an exhausting regulatory approval process (e.g. Gamida Cell), it says 'your expectations are wrong. There won't be a need to rerate downward to reflect previously uncrystallised trading losses & postponed breakeven revenue. Because pre-launch product is already there & seamless extra cashflow will be available on an as-needed basis right from the getgo - and it won't be from you'.

To analysts it says 'do your homework early. This stock isn't waiting for bigpharma to put a buyout offer on the table or for 'the market' to wake up & adjust anticipated growth & penetration. It's being driven with clear aligned commitment among all the key inside players'

And last, but possibly not least, it says to the FDA 'we are taking our post-approval commitments to you seriously. We are well financed to meet our promises for post-approval follow-up.'.

And - oh yes - I should mention long-term MSB ordinary shareholders. Of course, to us the message is obvious. It says, see - here is funding that won't need to come from your pockets, and here is how we're planning on addressing that business hurdle that so many others fails at i.e. immediate post-approval implementation blues.

All good, as I see it.

Cheers