Ann: AGM Chairman's Address and Presentation, page-15

Fair call, I guess this is all very subjective. I have recently changed my investment approach to move away from speculative stocks. My personal opinion was that this company has no concrete plans to turn it cash positive in the near future. I have always believed that a company must be cash flow positive and if there are no clear paths to doing so, there is only so much a company can achieve.

My biggest concern is that they will soon run out of money and I don't believe there is enough confidence in the market to raise capital via shareholders. I think given the banks tightening lending policy, they would be unlikely to lend to the company in its current state and phosphagenics would be forced to seek funding via convertible notes or other high interest mechanisms.

Had the chairman expressed confidence around the closing of deals with clear revenue projections, I might have thought otherwise. To be honest, I found his comments to be extremely vague and circular and at times not directly answering the question. One example is where he was asked on two occasions about the costs associated with a name change and he would not provide any figures.

I wish with the company only success and hope it is a true turn around story, I have simply lost interest in it. These are my personal views only