Ignore him Kain. A troll who followed me over from ZIP. He wouldn't have the faintest idea on balance sheet analysis or the company and just spends all day trying to goad people on Hot Copper.
Have a good look at the Temasek and A*Star links with this company. I've written a good deal about the importance of the equity investing sovereign wealth fund arm of the Singaporean Gov' and particularly The Agency for Science, Technology and Research's (A*STAR) involvement. Of course the R&D arm of the Ministry of Trade and Industry of Singapore is obviously the vehicle for Singapore's government's R&D activities, and very much its ambitions to be the Asian hub for bio-tech (arguably it already is proving to be) may provide a continuing lifeline to a company that got itself in an awful balance sheet pickle - and is now priced accordingly.
Its in part why these sorts of deals are emerging for OSX, despite it minnow size, in my opinion (a little like "guanxi").
@Eqz provides some good insights on the possibilities above. Another risky effective call option investment that others will of course disparage to the obvious, given its massive fall in value, but given its apparent umbrella inclusion in Singapore's subtly centrally driven commercial strategies, may continue to get behind the scenes help on contracts in my opinion.
This company is long overdue an outcome to a proposed Innoventure JV deal (Temasek being invested in Innoventure) that may help its capital concerns going forward (CellHeal similar too, but that one a little tenuous). This one might rise from the ashes with a few guanxi style deals courtesy of Singaporean national strategic commercial interest and A*Star's involvement for example. It might not.
