1-2 mill per month, page-64

yearoftheel- MGMT have led us to believe that spinning off the oncology assets were always part of the plan....

However it certainly wasn't the plan to go negotiating deals- in the way of rights into the new Oncology company, when the SP is at these current levels. If the SP was sitting at higher levels, then we wouldn't be talking about any rights issues/placement or even be using the word split right now. It's just at 29c the true value of Fonda + Oncology is clearly not reflected, which share holders are understandably unhappy about( particularly our biggest share holder...)If the intention of big shareholders was to split the company now( There are alot of reasons why they might wish to do this), then the only way to effectively do it would be to kill the SP. IMO there's no way it would happen if the SP was sitting sweet. So if you push the SP down so much then it becomes painfully obviously to MGMT and the board that their company is under valued( Which plays on emotions, and adds more pressure- as they're the ones we all hold accountable), this makes it an easy job convincing them that perhaps the true value might be better reflected if assets were to be split up sooner rather than later....

Like I mentioned above, it's also away for orbis to hedge their investment, in-case oncology doesn't go as planned. Sure orbis doesn't directly own anymore of the company, and have actually invested more in order to maintain their equivalent holdings. However more money would have always been needed to fund oncology anyway- Orbis would have to top up regardless, accept further down the track they might not of had the sweetener in the form of options attached to the Placement. They also might of had to sacrifice more fonda revenue in the process( If 90% of Fonda revenue is going back to holders, then Orbis are going to do very well) Paying up now helps ensure them of an income stream- instead of fonda recklessly being pumped back into oncology.

Remember instos are always looking for ways to de-risk their investment. So in this case they might also be concerned that further down the track they won't beable to gain enough support in order to split the company in a way that benefits them. They could also be concerned over Fonda revenues being wasted on perusing unnecessary avenues. There's also going to be the concern of oncology not working out- What would their investment be looking like then? Perhaps a split now would of been the best move after all.(I'm just trying to demonstrate how instos might look to manage their positions)

I'm not holding Orbis responsibly for the SP drop, however I'm also not denying that it could of played into their hands.....

One things for sure though- there's certainly some tension in these threads! ;)