I was debating whether or not to respond to the numerous posts...

I was debating whether or not to respond to the numerous posts you have made and what I would consider the belittling of posters on their lack of understanding of financial reports or financial accountability. I feel that some of your posts even seem to question management on the use of funds and in particular the utilisation of $50m capital raise in October 2019.

The following was the announcement made to this CR. “Mesoblast Limited (ASX: MSB; Nasdaq: MESO), leader in cellular medicines for inflammatory diseases, announced today that it has successfully completed a A$75 million capital raising via a placement to existing and new Australian and global institutional investors.

“The net proceeds will principally be used to build product inventory and a targeted United States sales force in preparation for the potential United States commercial launch of remestemcel-L in the treatment of pediatric steroid-refractory acute graft versus host disease. Proceeds will also be used to complete Phase 3 trials for chronic low back pain and advanced heart failure, and for working capital and general corporate purposes”.

We may dispute on the quantum in $ terms what principally means. Just bear with me for a while. We do not see inventories in the balance sheet and you may wonder why? Therefore the inference is that the money has disappeared and the initial purpose of the funds was not fulfilled. I do not perceive for a second that MSB would indulge in such underhand tactics unfortunately you did not read the Financial Statement in its entirety as you would have found the answer explained quite clearly at least to me. For convenience to you I have reproduced Pg 56, note 3 which is as follows:

	In US$	Within 1 yr	Between 1-2 yrs	Between 3-5 yrs	Over 5 years	Total contractual cash flows
1	LeaseLiability 3	3,258	2,055	4,408	903	10,624
2	Purchase commitments 3	11,752	5,864	22,553	-	39,989

(3) We entered into a manufacturing service agreement with Lonza for the supply of commercial product for the potential approval and launch of RYONCIL for the treatment of pediatric acute graft versus host disease in the US market in October 2019. This agreement contains lease and non-lease components with a non-cancellable term of 4.5 years. The agreement contains a minimum financial commitment of $44.3 million. We have accounted for the lease component within the agreement as a lease liability separately from the non-lease components. As of December 31, 2019, the minimum financial commitment of the lease and non-lease components are $4.3 million and $40.0 million, respectively, disclosed within the contractual obligations as lease liabilities and purchase commitments, respectively. If there is a significant delay in the expected approval date of the BLA for RYONCIL by the FDA then the minimum financial commitment under this manufacturing services agreement will reduce by $31.4 million, with $3.0 million of this reduction relating to the lease component and $28.4 million relating to the non-lease component of the agreement.

If you still do not understand. Let me explain. Unlike manufactured products medical products do have a shelf life. Therefore if you manufacture in this case Ryoncil well before approval by the FDA for commercialisation and if there are delays in obtaining the BLA, the products depending on the expiry dates, cannot be used and will have to be destroyed. The agreement between MSB and Lonzo is a very important one and the terms have to be very carefully worded to ensure that Lonzo only commences production at the right time and as far as Lonzo is concerned they are committed to producing the product in a timely manner to ensure that supply is available when needed. Both parties have contractual obligations to adhered to.Both MSB and Lonzo will have to work closely to ensure that a low wastage factor is achieved to maximise profits.

Many hospitals both private and public have to vey careful when they stock up blood and blood products and vaccines and other products which have a short shelf life as this can cause unnecessary write-offs and a waste of money which could otherwise been put to better use.

MSB has a minimum commitment of $44.3M and from the above table, the commitment is even more. I am sure you will realise that companies are subject to rules and regulations and if any attempt is made to deviate from these rules, initially audit will pick it up and if for some reason audit has fail and the regulatory bodies pick it up, the penalties are not worth the risk.

I hope that you are now clear about the capital raise of US50M and if not so, I am not going to waste my time debating this matter as I am satisfied that management has been metriculous in their planning and I am sure that shareholders will be happy with the investments made in this company.