Ann: Notice of Extraordinary General Meeting/Proxy Form, page-108

This rant is probably just the current bout of COVID talking so feel free to ignore it. I'll probably regret it in the morning when the fog is clearer.

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I really don't understand the extreme negativity in your argument here. Yes it's $40M AUD total for those 3 milestones but it doesn't happen in 1 hit, it's not all cash, and it's predicated on very significant inflection points for the company.

We will need to fork out $8M USD for primary completion of Phase 1b soon, of which it can be part paid in shares. Going on the deferred payment last year they handed across $5M AUD worth of shares, or approx. 35% of the total payment ($14.4M AUD was the cash portion). If they are able to do the same ratio then it's approx. $8M AUD from our cash position and the rest in shares.

Announcing FDA approval for a registrational trial is significant, it will be the most significant news this company has ever announced and expect some appreciation in the share price. I'll stick my neck all the way out and say I do expect greater than $40M AUD MC appreciation from a registrational trial announcement, regardless of the confidence you have in your professional assessment of Azer-cell's apparently miniscule TAM. We may even get a nice $26M funding injection from the warrants! In addition to the raise announced today, pending detail. Sounds like a lot of the pain you're warning about is already factored into the SP...

Statements like "over 50% of the current MC" are wholly negative and discount any possible positive SP appreciation based on the news you're assuming will occur in order for the total cost of the trial and milestones to be required? Results and news generate value which is then cashed in and used for further clinical activities. That's the whole point of listing a speculative biotech company, and if it comes off why investors should expect returns commensurate with the risk. This isn't some unique situation and neither is it dire.



On an unrelated note, I also wanted to add that the convertible notes conversion is Schrodinger's cat reanimated. Holding whatever spectre appears most negative at the time. Since it's been announced CVI have apparently shorted the stock (so well they're now effectively paying a premium for the deal), yet they will also opt to convert it all and dump on shareholders in the NFY, and will also continue to indefinitely hold the SP down through any news. It's a big consideration for investors, but it's not insurmountable and it's not everything at once.