Here is my understanding of the situation:The current management...

Here is my understanding of the situation:

The current management was hired quite specifically for the Dignostics business. Obviously the cash burn rate is twice that of the royalties from Bayer CropScience AG as the contract with Bayer has no minimum quantities nor timeframe for the test kit sales.

Once this line of business is proved to be not making money, it is probably correct to cut the losses before the whole company go under. As it is now, the company has no debt but still with cash and IP.

Once the Dignostic business is not viable, the management hired specifically for that purpose will have to go.

As per the contract term, Jenny Harry, Lisa Jones and Robyn Lindner are given 6 months notice for termination. They will be paid till end Feb 2012.

The rest are on a 3 months notice basis. So they should be gone by Nov 2010.

The redundancy payment seems to be minimal as each year of service will get 3 weeks' pay.

So I assumed the majority of the $1.6m cost would be for termination of the manufacturing contract with Pacific Biotech Co. Ltd in Thailand as well as paying of the advisors in the US.

The company will still be around to fight another day. So it is not like the STI situation.

It is still worth 0.3c - 0.4c with value of the shell ($2m), cash ($1m) and IP assets (??)

DYOR