Ann: Investor Presentation , page-7

jtaylor

Just my 2 cents ...

They have not announced a CR as yet, but have advised they are planning a small SPP.

Market should remember though that they can hold out for at least 4 - 6 weeks as they expect to receive $500k+ R&D rebate.

In that time IMO it is likely they'll secure the Brazilian distribution deal and therefore price will be north of current levels as market has been waiting on this deal to consummate for sometime. Also a lot of people think it will have large flow on effects into US and EUR.

Presentation didn't focus too much on the burette as the market already knows the story. No point rehashing old information as we already know Taiwan secured and going through regulatory approval, Brazil expected in the near term in which time they will push into US and EUR. Can't announce much more than that and no point marketing as it is a distributors game, not direct marketing.

Remember the burette they have to pitch to hospitals, large multinationals, people with vested interests etc. They are trying to capture a portion of an existing market so hence why they want to capture Brazil and Taiwan to make enough noise for the big players to move on them. At this stage no rush for the multinational in the US who tested product to move, they secure Brazil though and start looking a threat, different story.

The Pericoach is entirely different. No distributors required, no hospitals and no persons with vested interests. They are not trying to capture a portion of a market dominated by majors as there isn't one, they are growing a market with no comparable products to treat incontinence. It is purely a marketing play and they already have doctors, clinicians and physios onboard to recommend it to patience on a 1 to 1 level. It is in the mobile health space that is growing - just have a look at ISN shareprice with asthma app.

I very much like them diversifying into a category they have no majors dominating. Their only negative competition with the PeriCoach may come from the pad and nappy companies, however they clean up the problem whereas this treats it and stops it from happening.

IMO if they aren't cashflow positive and generating profits next year I'll be amazed.

As for the SPP, remember last time share price was 1.8c with a 2c raising of which directors underwrote $1M+