cash flow from fondaparinux and debt funding, page-61

In PS's audio he was asked about a CR and he indicated that the company was reviewing funding strategies that are non dilutionary and that they are looking at a possible US$ denominated instrument and that they are looking at an innovative approach.

I clearly got the impression that a CR is out of the question. At worst, a convertible note linked to drawn down debt is likely IMO.

PS is keen to get something happening soon as possible especially as he has indicated that revenue from Fonda is not likely to flow to ACL until Q1 or Q2 2012.

IMO, the next two important steps are the product launch and a funding deal. PS has indicated that a pre approval shipment has already been dispatched to the US and product to market is likely to be rapid.

Interestingly, the development cost according to PS are single digit millions and profit to ACL is likely to be several 10's of millions.

The most interesting comment from PS was that the future of ACL is as an Oncology Co. The potential earnings from HA Irinotecan will be far far greater than earnings from Fonda.

I see a longer term strategy on ACL.

ACL's price has retreated as predicted albeit from a lower peak than we expected. I don't see the price falling much lower than current price.

I do see the price spiking on DRS launch and announcement re funding and announcement re HA Irinotecan phase 3 start up in Sept so there may be some trading opportunities for those of us who use that strategy.

Longer term, as Phase three progresses and Phase 2 kicks in, the interest will become very keen and as the potential earnings from the HyACT platform become obvious so will the price of ACL progress especially as ACL retains 100% of the HyACT value.

Exciting times ahead for ACL holders

MO only

Cheers