lets talk about arthron

Arthron Sales

This is what PRR and Southern Cross Equity Reported in Oct 2005:

Arthron (85%): Represents a next generation rheumatoid arthritis drug based on the FCƒ×RIIa receptor, a good upstream target for rheumatoid arthritis and a billion dollar a year market for ¡¥TNF non-responders¡¦. The Arthron technology is ready for licensing and is attracting interest from overseas Pharmas. We value Prima¡¦s interest in Arthron at $20.1m-$54m.


This is what PRR management achieved and was reported in the Lodge Report:

¡§About a year later, on 06 October 2005, Prima announced the sale of all Arthron assets to Trillium Therapeutics Inc. (Toronto, Canada). Prima received an up-front payment of US$500,000 and 7% equity stake in Trillium (currently valued by Prima at $A3.2m). Trillium is continuing all of Arthron¡¦s R&D collaborations and, as research milestones are met, Prima¡¦s share in Trillium could increase to 13%¡¨

So SCE valued Arthron at $20 to 50 million and Eugene and Marcus managed to do a deal a year later valued at $3.7 million now read on¡K¡K..


And now here¡¦s how PRR represented the deal at their 2006 AGM:

¡§That the Company approve the issue to Mr. Eugene Kopp of one hundred and seventy-eight
thousand one hundred and twenty five (178,125) ordinary shares in the capital of the
Company deemed fully paid at an issue price of eight and a half cents ($0.085) per share.¡¨

Subject to shareholders approval, Mr. Eugene Kopp will be issued a total of one hundred and seventy eight thousand one hundred and twenty-five (178,125) ordinary shares in the capital of the Company, fully paid at a deemed issue price of eight and one half cents ($0.085) each as a bonus associated with the Trillium Therapeutics transaction.


¡§That the Company approve the issue to Mr. Marcus Clark of seven hundred and twenty-four
thousand three hundred and seventy-five (724,375) ordinary shares in the capital of the
Company deemed fully paid at an issue price of eight and a half cents ($0.085) per share.¡¨

Subject to shareholders approval, Mr. Marcus Clark will be issued a total of seven hundred and
twenty-four thousand three hundred and seventy-five (724,375) ordinary shares in the capital of the Company, fully paid at a deemed issue price of eight and one half cents ($0.085) each as a bonus associated with the Trillium Therapeutics transaction.

These guys paid themselves a bonus for a serious reduction in shareholder value ¡V what a hide !