east hill now up to double digit ownership

As expected, East Hill continues to accumulate - they are now sitting on 10.25% of Biota.

So what is their agenda?

- Are they just canny or quirky yanks who are getting in on the ground floor, courtesy of their knowledge of Biota through Biota's acquisition of Prolysis?

- Or is there another agenda once they get close to 20%? There is a possibility that East Hill (and Hunter Hall) could get into a far stronger position, whilst at the same time, the SP continues to mysteriously fall.

As someone mentioned recently (Ecsc, was it you?), look at what just happened to ACL? They are sitting on some great opportunities but are short on cash. The perception amongst holders is that ACL management felt under pressure from their largest holder (Orbis), who many holders believe may have steered ACL management into a company restructure in return for funds, whilst the SP was getting weaker and weaker - through this natural dilution, ACL have just announced a split of the company into two and the only holder to come out unscathed is the largest holder (Orbis) who retain their % ownership of both companies. All other holders have seen their ownership diluted by up to 30% over the last 6 months or so.

This scenario could very easily be replicated by Biota. It is quite possible that the company could be split (maybe LANI can be spun off with a promise of regular dividends to holders) as the SP somehow keeps getting weaker, to a point where a cash injection might be seen as very important. Rather than going to all holders on a cap raising, Biota management could potentially go to their two largest holders and negotiate a placement in return for $$$ and in return the two holders would see that their % of the company does not drop, whilst all other holders would see a substantial dilution, only in return for more cash reserves.

It is worth looking at the ACL forum and looking at the parallels with Biota. If a possible private CR is a potential concern, the ACL scenario should be flagged to Biota management as an approach that is not going to be tolerated by holders.