Ann: Trading Halt, page-680

To date, I note the language our CFO has been using in his comments in a few investor calls. It seems he allocates funds for each indication. For example, Raise X funds for X treatment. That has been his style to date. I assume, the total progressed cost, including funding costs for X treatment also can be assigned to that treatment, like a cost centre. I am sure the accurate cost to bring to market is part of the pricing justification.

As such I expect this 100m to be for a named treatment. We could guess, I am guessing manufacturing for COVID-19. That will be encouraging.

I noted in SI language, he reiterated clearly that the trial will take a few months in a few interviews, he seemed to labour on this. He was either tempering shareholder expectations and/or towing the FDA line IMO. Raising money now under this thinking may be what is best. I prefer the trial to go long enough to maximise the price on sale.

We will have to prove to the FDA our manufacturing capability for approval. I hope that means 3D. It seemed a refreshed agreement with LONZA was needed for our application for GVHD. So, this 100m may be to address the same FDA requirement. Certainly, IF the results are good, having a statement about manufacturing already sorted will assist us greatly to “frame” the story. We do not want the story to be “stem cells take too long” which is an unfair story for an unplanned treatment.

I hope we start 24/7 manufacturing on closing. I also hope we do not partner in the US. We have those GVHD staff being engaged. this is the type of product that should sell itself. This may give us the opening to set up our own network for future interactions.

This money may also help improve our negotiations.

All upside in my opinion.