a cure for hep c, aids, the flu and dengue..., page-131

G'day Moonwalker,

The phase II HIV trials are contingent upon the availability of funding. In the event of a successful conclusion to the phase IIb HCV trials, and assuming no takeover or bidding battles ensue, there are three potential sources of capital inflow:

1) The partnership, if it contains the cash purchase of equity or certain market rights, or if it provides for a refund of previous expenditure. If we factor in ongoing delays and estimate that the trial will be completed in March with results in April or May, then this capital inflow could occur as soon as June or July 2011.

2) Capital raising, which would be most likely to occur after the trial results as there is little buying pressure at the moment. A small capital raising may be prudent before the trial results are released (to keep the company afloat in the event of negative trial outcomes) - it would be great to see a little pro rata option issue like the one they had recently.

3) Exercise of Dec2011 options. This will either occur at that date or with the capital raising (if it is pro rata and considerately constructed). It is almost certain the company will not just sit idly waiting for the options to expire.

The other alternative is that the HIV trials are funded by the partnership.


With that in mind, and contingent upon HCV trial success, I'd say BIT will have the funding in place by 2H11 and the trial will commence during that half. It's certainly just as interesting as the HCV work, and could pay huge dividends - a "cure for AIDS" brings complex science within easy grasp of prospective investors.

Cheers