my thoughts on meeting

After getting home at midnight last night was too tired to post. These were some notes I made.

Solamind have nil shares on Solagran register.

Have entered into a MOU with 21 Russian scientists. Shares to be granted after approval at AGM. They will stay for 3 years to further develop products. Shares not available upfront and are performance based.

Solagran cannot protect product because it is natural. Must protect processes and techniques for production and that has been a major priority.

US$1K price is an assumed price but is not finalised. Considered a floor price and negotiations have temporarily stalled.

Currently 7KG per mont (1400 courses) being produced of Ropren. COGS is not known but working on 35% with gross margin 65%.

55-60% tax in Russia means they cannot sell in Russia until a tax structure is in place (2 months?). This is considered to be very important and they are working with International tax experts in Melb (very expensive) who have put forward 4 options for consideration.

Price o/s Russua should be US$3K+.

BPO only has 2 employees outside board members. Denis and Peter (I think) were to have a meeting today to get things moving along. They are behind with their trials and only have 12 months left of their agreement.

By end of 2008 SLA will have 250m shares (fully diluted) on issue.

The Directors have a massive belief in the product and consider that 'R' is 20 years ahead of opposition.

They have been 5 years listed on stock exchange and cost of development to date is $34m which is considered very cheap. Are confident that in 5 years time t/o will be $1b.

In March 08 they finished building plant at Tomsk factory. Then started testing. A unique process that is very complex. Since March have been testing equipment and analyse each part of production. Important to be able to produce 10KG p.mth and increasing to 20KG p.mth. All tests and trials finished and starting production of polyprenols.

Aim to produce 200KG of R by end of 08/09 which is 40,000 courses.

New production facility facility is aiming for 200kg p.mth.

Taled about need for 3rd and 4th factory to meet demand. Nano-particles should increase supply.

Dr O'Neil from NZ gave 4 inspiring incidents of the use of R. 1 was her daughters accident where liver was torn and was in danger of dying. Normal recovery would take many weeks being bedridden, nausea, etc. She contacted Vagif and obtained some R and A which were to be used for 4 weeks. Stopped using after 3 weeks. Daughter was up and about wanting to go to school and generally had too much energy. Drs were amazed at recovery. Second case was a serious burns victim. Bioeffective was applied topically and resulted in healing process being 1 week. Other 2 cases were not detailed but she assured us that they were similar stories. As a result NZ is to utilise products from 1st October at a cost of NZ$3,800 on a as needed bases. There were no problems using products and no side effects. NZ will not be allowed to advertise products but Dr O'Neil said work of mouth amongst doctor fraternity would be very strong.

Documentary is gathering info on historical basis going back many years up to now with end product ready for release. May be shown on SBS at a later date.

Discussed cost and financing of 2nd factory expected to be $12-16m - a lot of funding out of revenue..

Source of raw materials - have a deal with Tomsk Govt. Because a large employer with 140 staff they are considered special and get every assistance. Pine material is a by-product of forestry industry and is available virtually at collecting cost only. Have access to 5000 hectares + 5000 hectares of bare land to be planted to trees.

App 4E is not final set of audited accounts. Some differences of opinion. Final report due 30/9.

Shelf life of R = minimum 2 years. If stored properly could be 4 years.

Demand is based on talks with hospitals/doctors. Knowledge of number of people needing help with alcohol, depression and liver problems. A country of 230m people has more than a million suffering from ailments targetted by R and A.

1KG of R produced synthetically would cost + or - $50m.

Lizard6