Not real flash for those that hold.Explanation for voluntary...

Not real flash for those that hold.




Explanation for voluntary Trading Halt and subsequent
Suspension of Trading in the Company’s shares
Tuesday 12 February 2008
Anadis Ltd announced in August 2007 that revenue from contract manufacture for third
parties was anticipated to come in above $8 million for the financial year 2008. This
expected increase in revenue, over 80% on the previous year, was due to the company
having secured the manufacturing of a new product line for a new client. Without
warning or explanation that third party business has been placed into Administration,
with outstanding trade debt to Anadis of approximately $400,000.
There is no implication that Anadis is in any way responsible for the business failure of
the third party.
Actual revenue for the half year ending December 2007 for third party manufacturing
was just over $4 million, in line with the increased forecast for the financial year. The
revenue from this segment of Anadis business is now considered unlikely to reach the $8
million forecast. This is disappointing particularly as Anadis is currently in negotiation
with certain parties interested in acquiring the non-core contract manufacturing business.
Nevertheless the Board has agreed that third party manufacturing of food type products is
not fundamental to the company’s value creation. Anadis has always outsourced and will
continue to outsource the manufacture of its own R&D based products, such as Travelan.
A strategic decision has been taken to divest the business of manufacturing third party
products. Therefore despite the inopportune loss of a valuable client, the sale of the
manufacturing business is being progressed.
Anadis is pursuing the $400,000 debt left by the defaulting client but the extent and
timing of the recovery is uncertain. This trading cash flow shortfall has placed a strain on
the immediate financial position of the Company, which requires an injection of external
capital. The Company has a number of capital raising initiatives under way the outcome
of which should be determined within approximately one week. Directors believe it is
appropriate that the Company’s shares remain suspended from trading until the capital
raising has been finalised.
The Company’s Management and the Board is very committed to ensuring the financial
health of the company and to continue pursuing the substantial commercial opportunities
that exist for Anadis large scale and unique antibody based technologies.
Roman Zwolenski
Chairman