Ann: Smoking cessation trial results of ongoing data analysis, page-20

Hi all

Apologies for not posting sooner, been a busy week with work.

Key points I took from the AGM:
- The board were adamant that the capital raising which took place earlier this year, was not able to wait until after the positive results of the smoking cessation trial were released.
- The current cash burn is and will continue to be $250k/month.
- By the end of December, there will be $190k remaining in the bank (I noticed Absolutely Clueless had $100k mentioned above... not sure if I misheard, apologies if so - either way, not much)
- The company strategy had been to boost the share price with positive Cpn10 results and raise capital at this higher price to fund further nadalol etc trials into the future. Since releasing the data, the number of parties interested in the Cpn10 IP has dropped from 30 down to 5. There ARE still 5 companies actively reviewing and in discussions with the board.
- With further trials in the respiratory franchise unable to be funded, they are sitting dormant on the sidelines... There was a real tone of frustration from the board about this predicament.
- As a result of this cash flow dilemma, the company has made the decision to engage Feranga not only to look to partner Cpn10 (seems more and more unlikely given the number of companies walking away) but to look to partner and or sell the remaining assets and IP i.e zafurlakast, nadalol etc.
- The SPP is aiming to raise between $500k - $1m to give the board a buffer of 2-4 months in 2016 to finalise the negotiations with interested parties.
- This may be somewhat of an assumption but my feeling was that they NEED at least $500k to complete this comfortably... any more would be a bonus.
- There are a "handful" (5) companies who have signed NDA's with Invion in relation to the acquisition/partnering of all assets/IP.
- when asked what the target valuation for the company was if it were to be sold, the board advised that were not at that stage of discussions yet and that the 5 interested companies are all focusing on completing their due diligence on the existing science
- we were given assurance that the IP protection on all assets was strong and not of any concern
- The company is looking at alternative funding arrangements such as a loan which will provide them with enough time to finalise negotiations and this seemed to be the preference (albeit not easy for a company such as Invion to secure)
- If they are unable to raise the $500K - $1m in the SPP, and cannot secure a loan, they will look at another external capital raising... God forbid!!

I was unable to stay for the entire meeting so not sure what else was covered after I left.

My general thoughts:
Having bought into this company for the Lupus science, it was disappointing to hear that this was not looking promising. The board were ceratinly not trying to hype up the status of the Cpn10 trials/interest. On the other hand, Dr Collier / Glass was adamant that the results of the nadalol programs were extremely encouraging and were recognised as being a success by industry academics, so this is promising.

Given that there is a lot of valuable assets/IP in the science of the company, and given the strong results for nadalol, you would imagine that there will be a sale shortly and the current market cap of $10m would be comfortably blown away by many multiples.

I will be taking place in the SPP because the price is absurdly low and there is a short term infliction point in 2016. Unfortunately, as will be the case with many long term holders (Cbio days), this infliction is unlikely to get us back into the green but averaging down with $15K worth at $0.09c will help BIG TIME...

For those who are new to the company, sky high times ahead but not as high as they should have been! I'm jealous none the less.

peace

*the above is my own opinion and recollection of the AGM. DYOR









This years AGM was certainly a very different tone to that of last years. Last year was extremely positive (particularly from Glass), discussing the pipeline of drugs and the promising results they were anticipating or beginning to see. This year was a recognition of the positive results shown in the recent nadalol trials but more than anything was characterised by disappointment that