boitech 500k market cap osteo/athritis, page-32

Just done some more research, mainly from ASIC announcements-

The AGM notice announcement dated 1/11/11 is important as it highlights:

The directors salaries for the year, which instead of being paid in cash were paid in shares, but rather than being paid at a vwap for say the last 50 days, the shares were issued at 5c with a 10c option attached. This, to me, goes some way to show how the directors value the company if they are willing to be paid for their services but based on a 5c share price, thus receiving less shares.

The same was done for Ivory & Company for management fees, and Mr Leif Jensen for management fees.

The general meeting announcement on 21/9/11 is probably more important as it talks about the significant debt payable to Proxima, and again issuing shares at 5c to extinguish this debt of approximately $1.5m. It also goes on to explain that Proxima is NOT a related party. Pretty big deal settling the debt for 5c and receiving less shares when the market price was actually 1c! Somebody must surely know something about the future share price? The meeting also talks about the maximum holding LaJolla can take up- 19.9%.

The most interesting part of this announcement is page 23, resolution 13 which explains the Gilford Securities 12 month agreement to provide financial services:
"On 18 February 2011, the company entered into an agreement with Gilford Securities under which Gilford Securities were engaged as the Company's financial advisors, including exclusive coverage of North America, for the purposes of assisting and advising the Company in relation to fundraisings and potential transactions"

Gilford were paid 1m shares upfront and a monthly retainer of 65,000 shares per month for the duration of the 12 month term (note the 12 month term), to a maximum of 1,780,000.

Getting pretty close to the end of that 12 month contract now, and per the 4/11/11 announcement, they are going to raise the $1m with Gilford Securities,for a success fee. I guess the directors just want the share price to be higher, or at least where it was 12 months ago (4.5c).

I honestly don't think there will be a dump on Monday, especially by LaJolla. I think there is something else happening here where those who have been issued shares at 5c will be rewarded.

I do, however share the sentiments on the LaJolla situation and look forward to the capital raising and ceasing of the LaJolla arrangement. I wouldn't be surprised to see a similar investor presentation as per 14/4/11 when the price was around 4.5c, to prompt initial interest, but who knows what Gilford are doing behind the scenes in the states.

So the 12 month Gilford contract effectively expires on 18th February 2012. Surely they'll want to do the cap raising and get the success fee?

Great time imo with the Biotech sector already seeing interest in 2012. And of course the crazy market cap of BNE.