Azure Healthcare Revisited, page-9

Hi Value321,

I did see your original post, prior to be it being moderated.

In terms of including my own experiences in transitioning a business from Perth to the United States, 10 years ago, I (respectfully) disagree with your assertion that the industry dynamics are completely different.

My logic was as follows:

1. My original business was enjoying substantial revenue growth from the United States and it was forecasted that the North American business would continue to be the single largest source of revenues for the business. This is true of Azure Healthcare as it was from my original business.

2. I felt that it was beneficial to have my head office functions of manufacturing, business development, product development and marketing located in the same jurisdiction as our largest target market.

3. The benefits of this approach strongly aligned the core competencies of the divisions - products were being designed to address the market requirements of North America (with its own nuances), being manufactured in the United States (reducing manufacturing costs, benefiting of the branding "Made in America" - which is stronger now than it was in 2008, reduced shipping times, reduced freight costs), it also substantially advanced our Strategic Partnerships as we dealt directly with the head offices of our peer group and not regional offices, which accelerated and built stronger partnerships. Furthermore, it aligned our marketing and promotional material to echo the market requirements of the acute care segment - which in turn accelerated sales. I believe that this logic is as equally compelling for Azure Healthcare as it was for me 10 years ago.

4. In 2008, when we relocated our head office functions to the United States, the AUD/USD was around 82c - similar to where it is today and there was strong wage disparity between staff costs in Australia and the United States - this disparity still exists today.

My investment in AZV echo's my own experiences in a similar business. It is my belief that AZV will benefits from the relocation process, hence my investment, it up to each investor to analyse the company and determine if they agree or disagree with my own analysis.

I agree that working capital remains under pressure and include this in my own investment analysis.