RReflections on AGM presentation and Q&A, page-31

Some specific specific points from the AGM:

Amplification project for BBI:

The moved goal posts are cause by BBI wishing to produce a test with much greater performance than existing tests. Anteo has delivered on previous projects and continues to meet these new targets.

Josh promised Geoff 5x improvement, Josh asked Charlie for 10x improvement. At least 20x improvement in sensitivity has been achieved. The reaction from Charlie might suggest that is a significant underestimate of the current state or that more is to come.

Charlie's amplification work has been on a base of magnetic nano-particles - not on gold. This is important. BBI are the leaders in gold nano-particles, Geoff suggests BBI recognise that is a product with a limited lifetime. It indicates that success here should lead to use of this solution across their future ranges, leaving gold nano-particle lateral flow tests to the history books.

Agreements with and signing of POC-1:

The overall key terms of a contract have been agreed for a long period, including the royalty rate. That royalty rate is on the basis of mix&go beads only. Geoff expects to achieve a higher royalty rate if mix&go is additionally used on the sensor surface and as part of a pre-filter step before the test chamber.

POC-1 tends to sign agreements approximately 12 months prior to product release - that has been communicated directly to Geoff by POC-1. They are not one of the majors which holds off signing until the day of product release. As such (my thoughts) we should expect that signing around the time POC-1 commences clinical trials for registration (trials hoped to run through Q2).

Development work for POC-1:

The fancy machine (outright purchase, quarter million) that can produce key parts of the POC-1 cartridge will get commissioned with training in mid-December. From that point they can validate the ideas they have for improving both the sensor surface and pre-filtering (separation of some problematic elements before the fluid reaches the reaction chamber).

Acquisitions:

A bid for a private US based diagnostics company was placed around March 2014, which they lost to a very large company. The Anteo board appeared to think they had offered fair price and the bigger bidder paid somewhat too much. Do note -- no news of this action leaked out at the time or indeed until disclosed in Q&A at the AGM -- if such action had succeeded Anteo would have entered a trading halt and this big news would have occurred without warning or ability to readily take a late position.

There are two current acquisition targets. One based in Europe one based in US. Probably no action until after a company making agreement with POC-1 or BBI. The purchase would likely be cash + debt + scrip. Mark indicates a US based company is preferable for the ability to debt finance part of the acquisition on the US debt markets.

Mark doesn't want to be the chair of a boring break-even company. He wants to be chair of a monster. (approximately his words).

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I'll let others fill in details of conversations with Josh, I only spoke with him for 5 minutes after the meeting before further chewing Geoff's ear off. Josh is very impressive, he can talk both science and business very convincingly. He is a BDM we need, particularly for closing US sales. Unfortunately Charlie (along with Rachel) escaped to the airport within a few minutes of the meeting end - this was lucky for him as I had a lengthy technical interrogation planned!