chairmans address

Virax's "esteemed" Chairman made two interesting comments in his recent address:

1. Re VHL's clinical trial preparations: "Directors believe that these activities and their success have added very considerable shareholder value". Clearly, the Chairman has never got the message that shareholder value = share price. Apparently, he defines "shareholder value" in more esoteric terms.

2. Re funding: "As you will be aware, we have been seeking UK funding to support the trial. One way of securing this funding is in conjunction with a listing on the London Stock Exchange’s Alternative Investment Market. Our objective is to raise £5 million. Following admission to AIM, it would be possible to trade Virax shares on both the London market and the Australian Stock Exchange.

We are actively exploring a range of other possible options including project financing and selected strategic relationships."

Previously, the company advised that the sole source of funding being pursued for the Phase 11b trial was the UK AIM listing. Now they are saying they are also looking at other financing options. The obvious conclusion is that the AIM listing is by no means a forgone conclusion.

Regardless of how they attract funding, with just $2m in the bank, they better hurry up, or they will be calling in the receiver.