Next week's SP, page-180

Lets all be clear about the facts. Management were in a blackout period until the release of the underwrting agreement on the 17th and the AR on the 18th. The first directors option exercise notice was reported a full 24 minutes after the AR was released and continued almost daily thereafter. If at any point BIT were approached to enter into discussions re partnering etc that info would immediately and undeniably put management back into a blackout period.

What does this tell us? The options exercise papers were already filled out and the payment prepared for the moment that the blackout period ended. The price was already falling from its peak and execs would have known based on past experience that they had a short window to sell before their exec options became worthless. There was haste.

None of this is to criticise management for I think deep down each and every one of us in the same situation would have done exactly the same thing. You sit for three years on your incentive options, all the while they are worthless. Then suddenly they are worth more than your annual salary. Of coarse you take the profit in the few days that its available to you.

So given the realities of the exercising and selling that has been going on through the last couple of weeks its clear that there are no current talks of any substance and no negotiations currently underway. No expression of interest or anything that would be price sensitive should it be known. Speculation to the contrary is completely contradicted by the evidence. The underwriting agreement was put in place as an insurance policy in the event that the current rally didn't last long enough for the company to get the funds from options exercising.

The conference presentation will be great as they always are. Something to chat about but in itself it will achieve very little. The only material change that can be expected is if the one on one presentations to big pharma spark some genuine interest. Thats the ticket to the moon that everybody has been hoping for. Will that happen? I don't know. For many years I have hoped so but unlike some noobs here I'm not counting my chickens and selling certainties. I think its probably fair to call it a 50:50 this time around in the absense of seeing the actual data or knowing the current state of possible partner research. BIT225 is exciting and I've long believed in its possibilities but even management aren't betting their houses on it happening just yet.

I fear for those who have been buying options that will expire shortly without understanding the short term risks that they face. This could well impact the heads as well. Release of the congerence presentation is likely to cause a quick upward spike in the SP but its unlikely to be a sustained one. After that there is likely to be no tangible news until December at the very earliest. Mid to late nov could be a little ugly.