placement of 11m at 2.9c

Purple,
I am the new shareholder and accumulated my shares on the market since Jan 2010. Initial I thought this placement was generous by the management, but change my mind when know the full story... I did rang up the company queried about the 11M placement at 2.9c, which is required shareholders ratification at the AGM today.

The real story is, the 2.9c placement was done in March 2009, during the peak of the GFC. The company was forced to do a private placement for emergency funding to stay afloat.

Shareholders were invited for the for the right issue at the same 2.9c at the time, but not many had taken up. I think Dr Ting took most of the shortfall, and sold some shares on the market to pay for it.

To be fair, the emergency funding from this placement kept the company alive then. One of the major holder Urbane Holdings has been topping up their holding since from buying in the market. None of these big guys were allowed to participate in the recent right issue at 5c.

I think management are fairdinkum people, and do anything to minimize shareholders dilution. No bull*sh*ting with these people. That was why all 13 resolutions were passed at the AGM today.

The current expensive VIR-201 trial in SA is free-carried by donations from large mining company to the tune of $6M USD. Virax only have to carry any cost exceeding this amount to retain 100% interest in VIR-201.

VIR-201 is still proceeding nicely, meeting both time and budget. Virax is actually getting pay for administering this trial. I think Virax has received about $250k USD for 2009.. Very clever deal IMO.. Mate, just wait for this Transgene deal and we will see the 30c level.. and if Transgene can leave us alone until Jun, we will see a kool dollar share when VIR-201 positive trial results are out.. cheers