novogen. rising from the ashes

Guys

I can understand why some here are getting just a little agitated that a director of their company would dare to cash in some of his shares.

If you notice just a touch of sarcasm here.... well you might just be right. (grin) You will maybe remember the little spat I had with Katy Tea Leaves recently on this subject. Her opinion was that his motives were suspect, he probably sold his shares at such a low price to spite us…. and that he was a non entity anyway.

I think it might be useful to discuss some points that no one seems to have mentioned much so far…. Just in case we are tempted to get too carried away.

Let’s recall the situation just one year ago. The company's cash position at that time was VERY depleted and all of the assets had been transferred to MEIP in the USA. We all got our value out of that by getting a proportion of new shares in MEIP.

So... we were a company in name only. No assets at all, everything liquidated …. a small group of directors who had little or no interest in what we did from that point on….. a modest amount of cash in the bank ….and a dual listing on the NASDAQ and the ASX.

Left in those circumstances Novogen faced being sold off cheaply for a song and right about now we would probably be looking at each receiving a tiny check made out for pennies…. If we were lucky! And that would have been the end of the company.

Dr Kelly and his team came to our rescue just in time… in my opinion.

They came for a number of reasons, including Graham Kelly's heartfelt wish to bring this newly formed technology that he, Dr Heaton and Dr David Brown had developed in their years away from Novogen... back into the company where, he believes, it truly belongs and also to give whatever he could back in its success to the shareholders of Novogen.

When the Triaxial team backed there fabulous new technology into our then shell of a company they got their payment in two ways.

First was an upfront payment in shares for the technology they had carefully crafted in their company Triaxial. No cash you will notice… why?..... because we had precious little of that.

The second part of the deal was that they would receive more shares in staged payment as certain milestones were reached. This was hailed as a good thing at the time because it ensured they also had "skin in the game" and would only benefit further if ALL of the shareholders benefited as well.

According to the press releases Dr Heaton had about 7.6 million shares from his upfront payment before he recently sold two tranches including todays. His total now stands at about 6.7 million. From the PR’s he has sold altogether appx 888,000 shares. At say 23 cents a share that works out at just a little over AUD $ 200K. By any standard that is certainly not a wholesale bailout.

BUT…. There is something else that has hardly been mentioned up till now. That is the fact that as those milestones are reached ….. AND further stage payments to the Triaxial shareholders are made … the shareholding of Dr Heaton will increase substantially. Viewed in this light the small proportion of what he has sold to date will be even smaller when he has earned the rest of them.

What he needs the money for is entirely his business. Maybe he HAS bought his missus a new Mercedes as some on these boards have guessed at. (grin)

But, lets not forget he has recently had to move to the USA to give us a permanent presence in the country where a lot of our research is taking place…. And also where the biggest investors are likely to be situated. His personal expenditure has almost certainly increased. Who knows?… who cares?... it’s his business.

I personally don’t believe he will be a director for much longer. I think he took up the post in the interim whilst Dr Kelly was working 24/7 to get the whole ship moving. I would not be surprised to see some new directors come on board next year sometime, and that will give him much more time to concentrate on the very valuable work he is progressing right now.

All three of the Triaxial crew have worked wonders in the 11 months they have been in the company. Yes.. that’s right!… not even a year in their jobs yet and just take a look at what they have achieved in that time.

Just contrast that with the position I truly believe we would be in right now if they had not come on board. I personally shudder at the thought.

OK… there are certainly going to be some here who will pick holes in what I’ve had to say. They will argue that they bought in at the top of some of the recent big price jumps and don’t care about anything else except making money on day trading. They will say that the Triaxial boys are also in it to make some big money themselves…. and this last point is perfectly true of course. I really hope they eventually make Billions!

Those guys who are new to this company will have a certain point of view that might be different from the long term holders…. And they are perfectly entitled to it.

BUT…. I have had trouble just standing by and listening to some of the bilge that has been spouted lately. I believe that a bit of common sense and proportion needed to dragged back into the discussion.

Now I’ve got that off my chest….. let the bitchin commence. (grin)

In all sincerity

Apples