Ann: Notification regarding unquoted securities - MSB, page-6

Dilution is a reality, we shouldn’t deny that, but compared with the existing shareholders who are diluted and not working for the company, part of this issuance is in lieu of pay at a really difficult time of the company (at a point when losing that pay if the company were to bite dust was no longer a remote possibility), and these executives (and in the case of Dr. Krause, advisor) contributed directly to securing the Ryoncil approval and the subsequent capital raising. The former opens the way for further approvals, with at least a couple being potential blockbusters, and the latter averting the situation where the company fails to demonstrate to the FDA that it had the financial wherewithal to bring Ryoncil to market after approval (after all, they were applying for marketing approval, not just for scientific recognition).

The company is not just rewarding the people behind the effort, but demonstrating its bench strength. It is true that we still don’t have a permanent CFO, and there is no pre-announced succession plan, but it’s a combination that has worked much better than previous renditions in delivering actual outcomes.

Seen in this light, I am a bit more relaxed. Further beefing up of personnel will take time but hopefully will happen within the next year when extra resources should be needed for good execution in overseeing the commercialisation of follow-on indications and negotiating, coordinating and eventually running potential partnerships. With the CLBP trial actively recruiting, and AA discussions on Revascor for ischemic heart failure happening anytime this month (was it @reginaldp that mentioned it), partnerships should no longer be just wishful thinking. For instance, a much more meaningful discussion can perhaps be had with Grunenthal when the CLBP recruitment in the US is close to the finish line, and its commitment in the form more of paying the company a call option premium for future participation, could be upscaled into planning a similar trial in Europe to support EMA approval. (We know that Dr. Krause has previous experience working with the European regulator.)