associated risk, page-5

Hi mak = after the issue they would have been well funded and moving towards a decent cash flow depending on uptake of scans and approvals. Well beyond a spec as they actually had a product in the market and were finally getting scale sorted. The whole deal with RHT was that it was a scalable business so any additional growth required very little additional cost and income flowed straight to the bottom line.

Not blue chip but not at the super risky spec end either.

We were dealing with a stable management who were slow to get into the whole selling the product but recently seemed to have jumped their first hurdle. Now they are off being distracted and we don't know the benefits. Yes they can add skills to VK but what can VK add to RHT - we just don't know how smart RHT management are yet until we see the numbers and just what they have bought.

No i am not a seller but finger over trigger if I see anything else left field and unless I understand the new business and RHT strategy i will probably lighten and come back when they prove cash flow from existing business expansion and the accounts show just how much cash burn is required for VK business in maintaining patents and developing that product. there is some crossover but not full blown synergy and it might also stop RHT being the juicy little simple takeover prospect it was becoming.

Will know more when company comes out with a few more details