KKR PREPARES BID, page-89

I think Glaucus are about 3 years too late with their attack. They could have had much success if they had attacked before TFS/QIN:

* Started harvesting and selling high quality, sustainable Indian Sandalwood / Oil to USA, Europe, India, Middle East and (almost) China;

* Started covering their capital needs with cash flow from their three main businesses: Forest establishment and sales; Forest Management; and Product Sales;

* Refinanced their corporate bonds at a lower interest rate (indicating market confidence in their future) and maturing AFTER the big step up in harvests and cash flow to come;

* Passed considerable due-diligence by major new plantation investors and major new institutional shareholders;

*Bought out Santalis and progressed multiple uses of their oil for OTC and pharma products. By the end of calendar year 2017, they expect to have results from four Phase 2 trials and to have progressed to Phase 3 on one product. There are two further OTC products ready for launch, and one already on the market and selling 1 million units per year;

* Greatly improved their forest management expertise, tripling their yield from the first to the third harvest, improved growth rates to the extent that 5 year old trees are now bigger than the earlier 15 year old trees (Glaucus have not bothered to look), and improved survival rates to a 2% loss in the first year and less than 1% per year for the next 14 years.

I suggest that the shorters start covering, or they will be very exposed to a KKR 5% holding announcement, a takeover offer or better market acceptance of the QIN business following more research by investors thanks to Glaucus.