sequence of events

Hi All

This is the web site of CZDs` largest shareholder

http://www.merchantgroup.com.au/

You can see that they facilitated the placement of the 29+m
shares owned by SG Fleming earlier in the month, at the same time adding 3258903 shares to the Merchant Opportunities Fund.
We can assume from this that they know where the shares reside and may have some influence over the owners. Since then the Fund has increased the CZD holding on market to 19.28%. In the last annual report DK And LF held around 26m shares. Add the three together and you get about 34% of CZD.

This is the first newsletter for the fund and you will see that Andrew Chapman visited CZD in Adelaide in April. CZD are based in Melbourne so the Adelaide meeting would probably involved a brieling of Polynovo including Dr Greenwood.

http://www.merchantgroup.com.au/files/aprilmof.pdf

This is the next newsletter which descibes CZD as a residual investment(not sure what that means) but wasn`t a reason not to buy more shares subsequent and furhter increase the weighting of CZD in the fund.

http://www.merchantgroup.com.au/files/may.pdf

The question is what is the exit strategy of the fund, I doubt it wants to run CZD and the number of shares held together with others already mentioned makes some sort of corporate activity highly likely at some time.

This is only a small fund, however management is highly incentivised to maximise profits(see 1st newsletter) and that could be good for all of us. Have added a few today just in case.

Thats enough for one post more thoughts later