future profitability, page-9

Thanks GG for your detailed response. I'm still baffled why GTG would be happy to, in effect, reduce their stake by 30% for the sake of paying back a loan owed to them when, as you say, this is a 'no-brainer' and potentially worth 100s of millions of dollars. AND on top of it lose majority control.

Essentially, gtg owned 70% of a company that (aside from its potential) was currently valued at zero. As a result of reducing their holding to 46% and the recent raise, immunaid is now valued at 10m.......so compared to 70% of nothing, they now own 46% of the company and their holding is worth 4.6m

This is simply smoke and mirrors. If the company was able to raise money giving the company a value of $10mill, then that's what it's value was before the raising. This value is obviously attributed to its potential. It's potential hasn't changed after the raising. The only difference now is there's an extra $1mill in the kitty.

this is eesentially because gtg's main focus is on brevagen and no effort or cash was being spent on immunaid as a result, despite the growing interest and the incredible (understatement) results from past/recent/current human trials.

I would be questioning management capabilities then if they've ignored the growing interest and incredible results. Why not throw the million their way then and maintain the 75%? What material difference would there have been?

A second round of funding will be at even higher levels (say $10) and gtg's stake may well be further reduced/diluted again.....but to follow the logic.....gtg may then only hold 35%...but this 35% will be worth say 35m

To me it would have made sense for GTG to pay the mill to maintain their stake and when future funding is required (at $10), then accept the dilution at much higher prices and still maintain a very important majority control.

This does really sound very dodgy. Were many questions asked of management at the time this deal was anointed? Did any directors of GTG also take part in the capital raising for Immunaid?

Other than that, the technology does sound very interesting. No doubt if it is successful it will create substantial value to GTG.