news on its way, page-38

chookman

I very much like the position they are currently in.

They have funding for at least another year without factoring in any further capital raising. They have already indicated to the market through the issuance of the ALTO's that they are targeting 4c as the next raising price minimum. Remember, the delays set them back 6 months, so they obviously assumed what ever they have up their sleeve has a fair chance of getting the stock to at least 5c, which would have ensured conversion of the options. We are around that time now, i.e factoring in the supply delays and back on schedule.

17 hospitals is not a great deal to achieve to break even. QLD Health alone is 180 hospitals. If they penetrate their books, they have instant exposure to their break even target and potentially revenue from 1 deal alone.

If QLD Health starts purchasing the product, then this is a very big precursor to other states IMO. Remember, they have already said a trial is scheduled for the RPA which gives exposure to NSW Health.

As many have said all along, it will only take 1 hospital to come on that has say 3 or 4 partner or sister hospitals who also adopt it and the ball should really start rolling. i.e domino effect in full swing.

Domestically, they have every chance this year to line up some real contracts that would see them break even in 2013 and then potentially turn a profit. More than most bio's.

The negotiations and discussion in US and EUR are the elephant deals. If the product is as revolutionary, cost efficient and safe as the analysts have advised, then IMO it is only a matter of time and cutting of red tape before some form of MOU or HOA is achieved internationally.

Reasoning, this isn't a drug that if tested on patients could adversely affect their health and well being. This is a relatively simple device. Therefore, if the majors agree it has all the above benefits, then some form of clinical trial is the next reasonable step, as it is of little risk and cost for them to test and validate themselves in return for potentially huge upside against competition.