ann out: receives 4.2 mill in r&d incentives, page-10

Brighter Spark

Well researched.

Two important references to highlight:

"An application for a claim of $4.2 million will be made under the Research and Development tax incentive (“Offset”) when the Company submits its 2012 tax return. As this is the first year of the Offset, directors believe it is appropriate to understand how the offset will be administered by the Australian Taxation Office and AusIndustry before recognition in the financial statements."

"In the merger scheme booklet, however, there is reference made to a $5million limit - if Biota's asset values are impacted by a sum greater than this amount (I assume both positively or negatively), then this would have an impact on the deal terms. However, below this sum - no change."

Very interesting that Biota made a $4.2m claim for an R&D credit and knowing full well that there was the chance this would come through prior to merger completion, they could have very easily amended the merger scheme booklet from $5m down to $4m to ensure the benefit would flow through to Biota holders if the credit came through prior to the merger.

If the above is the situation, Damian Lismore has been negligent in his duties.

Further, if the DS and GSK royalties had totalled $800k, this would also have pushed us over the $5m merger scheme limit amount. Instead, the combined royalties were a measly $26,000, so no joy here either.

So rather than benefiting from this injection of funds in our BTA SP value, we are presenting a gift of $4.2m to NABI holders and the value of their holdings...we are bringing yet another a free gift to the table.

Well done Damian - Big Time!

What an absolute joke.