Ann: Strategic Transaction Update, page-15

As I understand it, the NGPDT is currently being used in China and South Africa, at least, and there is a facility being built in Cambodia, presumably for medical tourism. It would appear that this therapy works and has several years of successful use behind it. Obviously there have to be rigid, successful, trials in a first world country before the therapy can be marketed in the highly profitable markets in the advanced countries. The ultimate market is always the USA. Successful trials in Australia will lead to approval in the USA. These trials are already underway at Monash University. As I understand the announcements, IVX simply take over the management of these trials and CHO provide the money. I guess that CHO have to have someone to manage the trials and IVX can get a tax benefit which is not available to CHO if they finance them directly. As well this deal gives CHO access to about a $100M of tax losses if the trials are successful and the therapy is rolled out in Australia. In any case they will own more than 70% of IVX. It is easy to see the advantages of the deal for CHO. The best I can see for IVX shareholders, is that it beats liquidation.