Ann: R&D Heads of Agreement with Osmoflo, page-2

Not too shabby - little PO3 getting into bed with the subsidiary of an ˜AUD1.5Bn company; Hitachi Zosen.

Following hot on the heels of the HOA with Aspen Medical, we have further evidence that the company’s new commercialisation strategy is gaining traction; no doubt due to the new management team’s assessment and repositioning of the FRG tech. In fact, this development was alluded to in the Qtrly Operations Update of 29/1/21.

I think we are all sufficiently aware of Japanese culture to know that the Japanese are not in business for the fun of it. They wouldn’t be getting involved with PO3 to waste their time and money if they didn’t think there was merit to the FRG tech. This is confirmed by JE’s statement: “Osmoflo completed an initial and careful assessment of our technology prior to partnering with us.” And with AS on board, we have an advocate for the tech who can answer their every question or reservation about FRG in the greatest detail.

Unfortunately for Osmoflo, they didn’t consult with tech experts, @Maxlots and @ozblue prior to signing the HOA, as they could’ve told them they were wasting their time and money.

Just looking at their website, Osmoflo has a presence across Australia, the Middle East, India and Asia, and is in bed with companies such as Coca Cola, Glencore, Santos, Bechtel, Chevron and a company very close to my heart (and liver), Foster’s, to name but a few. I think that’ll be a sufficiently large footprint for PO3 to strut its stuff when Osmoflo & PO3 hopefully take this HOA to the next level.

PO3 reminds me of a patient coming out of a coma and learning to talk again. We have now had more news flow on the advancement of the commercialization of FRG in 3 weeks than we have had in probably the past 3 years. And although we have nothing conclusive just yet, with AS endorsing the tech the way he has both verbally and in writing, I am more confident than ever we are on to a BIG winner.

The new PO3 management team should be commended for its implementing of a new strategy that is obviously gaining traction and momentum; verified by the fact that it’s starting to put together an impressive array of wins in attracting highly credible industry partners that can help propel the company’s market penetration. A big rerate cannot be too far away.