something for ems to consider

Hi All

As alluded to in an earlier post I would like to flag the following scenario

First we must acknowledge that because the share price has not reached the dizzy heights predicted by Patersons (26 cents pre trial) that this has nothing what so ever to do with the quality of the project - why - because of three reasons

1) the market in Oz has no real experience in the field of small micro cap companies pioneering a new medical treatment for a major world health problem and so the numbers involved are not readily understood by our market

2) because of the market cap of EMS being too small even those insto's that could have an appreciation for what it is we are developing are prevented from getting involved because of their charter

3) bio tech stocks traditionally do not promote blue sky or potential but rather deal only in hard facts which often see's the share price play catch up with actual events (such as a deal) and not focus on what could happen - net effect is the true potential and value of the project is really only known by those who are in possession of the knowledge to evaluate it fully

So with that in mind lets consider the following scenario

EMS has fully diluted 453,769,487 shares on issue (after the EMSO's and EMSOB's are converted)

Lets assume for the exercise that the Malaria project is worth $528,960,000 which is 300,000,000 pounds - is it worth that - who knows but if it is then the following will make absolutely perfect sense

That equates to $1.16 per share provided all options are exercised which would bring in a further $14,573,136 dollars into the coffers of EMS

Lets say one of the four major player recognised the value of the project and began buying shares on market - (remembering no-one would exercise their options unless there was a reason to such as a special dividend or capital return) they could begin purchasing shares on market and buy say 71,000,000 which would give them 20% of the company and say push the price up to 50 cents (their average is 40 cents say) - at that point they could make a takeover for the company - lets say they offer 65 cents for the remainder - how many of you would sell? - if you did and they were to get to 90% and achieve the mandatory takeover then they would have bought the project for 71,000,000 at an average of .40 = cost of $28,400,000 and the remaining 382,769,487 at .65 = a cost of $248,800,166

This means they have purchased the project for $277,200,166 plus they will pocket the $14,573,136 from the options as well and will not only own the project BUT THE COMPANY AS WELL

Given that some people think Nicosorb could be worth 10 times the price of Artimist (I have no proof of that but some close to the company have suggested that - but even if it were worth the same) plus the ability of the delivery system to be used for fast acting pain relief make the transaction noted above an absolute bargain

Ask this question - would you be strong enough to walk away from an offer of 40 cents for your share let alone 65 cents - I think I would struggle even though I believe it is worth more

The scenario above is not a pipe dream - if the project has the ability to be applied to other uses then the value rises considerably - Calvin I would suggest may get a royalty on the way through and so the deal is done - Berlin Pharma won't be an issue as by then it will be a subsidiary of EMS

Upshot is - we all make a bundle of money while being totally screwed over and the directors won't have enough shares between them to stop it happening

So what do you all think - am I mad - am I thinking too deep or am I somewhere near the mark - I don't know but if I was interested in the Malaria project I don't see why I would stop at that

Clyde

I lost sleep last night over this particular ramble