In his recent Address, the Chairman made a number of comments,...

In his recent Address, the Chairman made a number of comments, which, when one reads between the lines, say the following:

What the Chairman said: "Funding for this Phase II trial is yet to be secured. We estimate the total cost for the proposed trial to be approximately $10 million Australian dollars."

What the Chairman really means: "In the three years that have elapsed since our Phase 11a result, we haven't raised any of the funds necessary to progress to the next stage. Such funds will now have to be raised at very depressed prices, resulting in still further dilution."

What the Chairman said: "One way of securing this funding is in conjunction with a listing on the London Stock Exchange’s Alternative Investment Market... We are actively exploring a range of other possible options including project financing and selected strategic relationships."

What the Chairman really means: "We are still some way off from securing funding, there being no gurantee we will raise the necessary funds."

What the Chairman said: "These funding activities have been underpinned by our domestic rights issue and the support of two of our principal shareholders."

What the Chairman really means: "Only two shareholders support management, without whose support, we would have shut up shop by now."

What the Chairman said: "Our proposed trials come at a time when we are witnessing a piling up of evidence that a new class of drug, immunotherapeutics, is close to realization. A recent Phase II trial announcement from Transgene in Strasbourg shows an impressive treatment preventing the onset of cervical cancer."

What the Chairman really means: "Although Virax has achieved absolutely no success to date, other firms in the same space have done well."

What the Chairman said: "You will be aware that we conducted a review of the company structure, and composition of the board and management earlier this year. The review determined that as we develop our clinical trial programs further, we will most certainly need new and fresh insights to further build the business."

What the Chairman really means: "Management acknowledges it is incompetent, and due to shareholder demands, has no choice but to make various board changes."

What the Chairman said: "In the last year directors have sacrificed $80,000 in fees. The workload on Directors has been very substantially increased this year, as there have been many important issues
to be considered for the future direction of the company."

What the Chairman really means: "Directors' fees previously reached outrageously high levels, which lead to shareholder demanding last year that directors reduce their fees. Due to both the reduced fees and increased workload, directors have actually earned their fees this year - in terms of quantity, if not quality of work."

What the Chairman said: "Richard de Lautour retires from the role of Chief Financial Officer at the end of the year. We are all indebted to Richard for his long and very thorough and valuable service to the company from 1996 when Virax relisted on the ASX. Richard will remain on a part time basis as Company Secretary."

What the Chairman really means: "The CFO was forced to resign due to shareholder activism. However, as Virax is run as an old boys club, the board have decided to provide Richard with continuing employment."

What the Chairman said: "On behalf of the Board I would like to thank our staff for their dedication and drive. They have achieved much with our limited resources."

What the Chairman really means: "Due to management's incompetence, nowhere near enough caital has been raised to make Virax a success. However, we have done a good job with the pathetically little capital that has been raised."

What the Chairman said: "Finally, I would also like to thank the shareholders for their loyalty and support during the year."

What the Chairman really means: " I realise that Virax has been a dog of a performer, and am therefore grateful that you have continued to fund us, thereby keeping management employed."