As a shareholder of Giaconda I'm in shock of the company going...

As a shareholder of Giaconda I'm in shock of the company going into 'Voluntary Administration'. The directors said in many ASX announcements that they will help finance Giaconda. Sorry I can't read invisible ink, directors now not supporting Giaconda financially, no announcement to ASX.

The Invisible Ink

Looks like we have been mislead to from the current soon to be disgraced CEO Mr.Patrick McLean and directors. In a previous announcement dated 30/11/2010 Chairman`s Address to Shareholders - 2010 AGM (not on the Giaconda Limited website, strange) http://www.giacondalimited.com/pages/investor/asx_press_release.html

Web link from the ASX website.

http://www.asx.com.au/asx/statistics/announcements.do?by=asxCode&asxCode=GIA&timeframe=D&period=M6

Quoting from page 8 eight from the Power Point presentation

I think that the amount of personal funds that the Directors have lent to the company says something about our commitment to and belief in what we are doing. I see and treat patients every day with some of the therapies that have been put under the wing of Giaconda and know firsthand what they can do. The original goal of setting up the Company was to get these therapies to patients around the world and we have made great progress.



But, it has taken more money than we originally planned and that money had to come from somewhere. So the Directors, Trevor, Chris, Patrick and I dug deep into our own pockets to help keep the progress going. Together we put in $280,000 dollars

Myoconda can still save Giaconda

I believed that this was going to be the year of Giaconda when all the directors� hard work and money would have paid off. The sale to Redhill Biopharma was and still is a great leap for Giaconda, there main drug will be Myoconda. Myoconda should be approved by the FDA in less than 12 months if all goes well.

The FDA has a special Fast Track Development Program; Myoconda does fall into this category.

From Wikipedia.com

The FDA Fast Track Development Program is a designation of the United States Food and Drug Administration (FDA) that accelerates the approval of investigational new drugs undergoing clinical trials. Such status is often given to agents that show promise in treating serious, life-threatening medical conditions for which no other drug either exists or works as well.

http://en.wikipedia.org/wiki/FDA_Fast_Track_Development_Program

As stated before Myoconda should be worth approx 140 Million US$ in sales royalties to Giaconda (very optimistic but realistic approx minimum 70 million US$ per year.) Please see my old postings.


Myoconda Estimate sales $US $2B x 7% Sales =140
Heliconda Estimate sales $US $150M x 7% Sales =10.5
Picoconda Estimate sales $US $245M x 7% Sales =17
Total=$US $167.5M

If Myoconda is approved is a quick fashion this will save the company.

Redhill Biopharma

Patrick McLean is working for Redhill as a Product Manager at Redhill Biopharma. Seems very strange that Patrick McLean is working for the same drug company that Giaconda sold its three main drugs to (MYOCONDA, HELICONDA AND PICOCONDA). Nowhere has there been an announcement to the ASX on Mr Patrick Mclean working for Redhill. By no means am I�m I saying that there is anything underhanded in working for Redhill just strange that no announcement(s) have been made available to shareholders (maybe he doesn�t have to! But seems very strange as this should have been a positive announcement for Giaconda). If Patrick was working for Giaconda shareholder interest Redhill Biopharma would have made an announcement on any of their three drugs purchased from Giaconda in the past six months. IF Patrick is working for Giaconda shareholders there should be an announcement soon from Redhill as there has been no update from Redhill and Giaconda since the sale to Redhill, very strange.

http://www.redhillbio.com/about-redhill/team/

Redhill Biopharma TASE Update link (in Hebrew) just use Google Translate to covert Hebrew to English, ���easy.

http://maya.tase.co.il/bursa/index.asp?view=search&company_group=3001&srh_comp_lb=1573&srh_from=2010-08-28&srh_until=2011-02-28&srh_anaf=-1&srh_event=9999&all_reports=1

Voluntary Administration

Below is a link on how a voluntary Administration works in Australia.

http://www.bankruptcy.net.au/docs/VoluntaryAdministrations.pdf

The administration period is typically only 25 business days.

Summary of Process

1st Business Day: Appointment of administrator
The administrator takes control of company.
Directors� powers cease and liability for insolvent trading ends.
Moratorium on creditors� claims imposed.

8th Business Day: 1st meeting of creditors
Creditors confirm appointment of incumbent administrator or replace the incumbent
administrator with another.

18th Business Day: Report by administrator issued

Disclosure of investigations and viability of rescue plan, if proposed.

25th Business Day: 2nd meeting of creditors
Creditors determine company�s future.


Future of Giaconda
I feel the company has a strong future as long as the Administrators / Directors don�t go stupid with cash. The present IDIOT directors spent the following forcing the company to go into Administration.

Taken from Half Yearly Report

Personnel $16,010
Finance and legal $176,417
Administration $63,566
Research and development $74,364

Take out Finance and Legal and R&D the debt would have been $251,000 less. What the hell did they spend $176,000 on in Finance and Legal? And R&D $74,000 . To show how stupid the directors are. The directors spent over $2,800.00 per week on R&D. This is really stupid considering that the company is strictly short on cash. (Should have halted the R&D!!!)

A big question mark over Finance and legal at $176,000. What the hell did there directors do to see a bill of that amount? Auditors should be asking questions to the directors on this one?


The company could be still trading considering if the directors had some cash to help the company. Now the company could go into liquidation (don�t know what�s to buy considering as the drug patents have been sold to Redhill) Unless REDHILL purchases the royalties from Administrator that would raise a few eyebrows in Australia.

I�m still wondering as many other Giaconda shareholders when Giaconda survived the GFC in 08 cannot survive the best chance of making Giaconda a great company. I feel there is another agenda on the horizon for this company as the directors appear to want to place the company into Administration and liquidate the company. Only time will tell, prove me wrong.

Sorry for all shareholders who own this stock, looks like we have been shafted by the directors.

Wally