ann. out, page-9

No real surprise ... Financial position of both companies looks poor...

On known info. FER's cash position alone couldn't sustain both companies post merger...

FER @ 30/4 had $5.6 mil. - down to $3.8 mil. on 31/5....Burned $1.8 mil. in May.....
Further outstanding settlement costs? Also future legal's..

Of note - Biotech Daily recently est. that FER's cash pos. could be $2.5 mil. by the end of June ....

You wouldn't actually merge with FER just for their cash....

I suspect it was PLT's plan was to merge and then hit the market with a capital raising for the larger group...

Will be interesting to see if PLT have a plan B or can ann. large payments from sales over the last couple of months... Most likely will have to do a raising...

Pretty much common throughout the penny stocks on the ASX - low cash pos.. Hopefully nobody has invested money in PLT that they can't afford to lose....


Page 40 of the IER on manufacturing is interesting though.... These are very large numbers - I wonder how realistic they are...


Manufacturing facilities

153 Polartechnics has established a manufacturing facility in Australia for the production of TruScreen devices (consoles and handpieces).

154 Polartechnics contracted the production of consumables to a Chinese company based in Xiamen with an original plan of producing up to 20,000 units per month by June 2008. Process development continued in the later half of 2008 while on-going quality issues were rectified. This activity constrained initial capacity, however Polartechnics re-qualified the production system following completion of a process improvement programme in February 2009 and yield and capacity have now both doubled. Currently production is running at 50,000 units per month. Capacity upgrades are now being planned to increase this capability to over 100,000 consumables per month by July 2009 to meet the planned growth in sales.

155 Polartechnics also has manufacturing agreements with leading medical device companies—HTL Strefa (in Poland) and First Engineering Plastics (in Malaysia) for the large scale production of consumables. Both manufacturers are gold standard manufacturers of medical technology products and hold ISO 13485 and ISO 9001 accreditation. These manufacturing agreements are expected by management to secure the supply of 360,000 additional consumables per month by the end of 2009 and 700,000 consumables per month by the end of 2010.