challenge accepted

Please see below a quick email that I just snapped out to Marty.

Dear Martin

I am writing to you following some vigorous debate about the nuances of the Prima Biomed story on the Hotcopper PRR thread.

I am not currently a PRR shareholder, although I have lost a substantial amount of money in Prima under previous management and am therefore wary of being twice bitten. We have spoken once before on the telephone and one of my lines of questioning arises from that brief discussion.

In this email I am seeking to encapsulate a number of thematics that have prompted debate between shareholders and other interested parties in recent weeks. I would be grateful for any response that you are able to provide, and I would advise that you should assume that anything that you write back to me will be posted undoctored and in its entirety on Hotcopper. Prior to your response I will be posting this email in a similar fashion.

Here goes:

1) Status of Clinical Trials

a) Please confirm whether the results generated from PRR's Phase IIa trials were statistically significant

b) Do you expect that PRR will need to undertake a larger Phase IIb clinical study prior to securing the required funding for a Phase III pivotal trial?

c) For a successful registration of CVac, what size trial (in numbers of subjects) do you believe will be required for i) Phase IIb, and subsequently ii) Phase III Pivotal. What primary endpoints of both studies would you be targeting?

d) What do you expect the cost of i) Phase IIb, and ii) Phase III pivotal to be? What are the timeframes for completion of these trials?

e) Regarding the pivotal study, from your discussions with the FDA thus far regarding your IND, have they indicated how many separate pivotal trials may be required?


2) Proposed funding strategy

a) appreciating that you currently have a $12 million facility in place with Fortrend Securities, when, if at all, is it your current intention to utilise this facility? Will this amount, in addition to your recent placement to sophisticateds, along with the potential $3 million proceeds of current SPP, provide adequate funding for at least your Phase IIb clinical study?


3) Relationship with Ian Frazer

a) When we spoke on the telephone, you mentioned Ian Frazer's name at least three times in less than two minutes. You indicated to me that your own involvement in the company had unfolded at the request of Ian, who had encouraged you to become involved with PRR. I wonder if maybe I misunderstood you on this front as the available documentary evidence suggests that you commenced your role at PRR in 2007 while Ian only became involved at the end of Q1 2008. Please clarify.

b) PRR makes much of the relationship with Ian Frazer in its public documents and presentations to external parties (I know, for example, that the nice people at the Trout Group in NYC smirk at the number of times that you mentioned his name in a presentation to them in 2008). Please clarify the extent of Ian Frazer's commitment to the company as represented by time committed in an average month.

c) In the event that Ian Frazer is dedicating a very significant amount of time to the company's initiatives, please clarify why he has not been the recipient of a significant allocation of options in the current notice of meeting.

4) Executive Options and related issues

a) Who chairs the remumeration committee at PRR?

b) What process did PRR go through in structuring the current proposed options issue to directors?

c) Do you think it is "Best Practice" to have an options structure that can see directors receiving a material amount of equity in PRR that does not vest subject to total shareholder returns? For example, between now and the end of September ordinary shareholders could suffer a material loss (ie. 40%+) and directors will still receive a substantial amount of free equity.

d) re the loan agreement with Lucy Turnbull, I note that a Deed of Variation was executed on April 30. Why was the original agreement varied? There appears to be a coincidence in timing between public announcement of the terms of Laurence Freedman's investment in PRR and the Turnbull loan being restructured. What were the original terms of the Turnbull arrangement?



I look forward to your thoughts.

Cheers

Red