spp, page-3

Mudguts -

Excellent summary of the situation. I agree completely. I can see the point troutfisho is making, but the numbers just don't add up.

I've repeatedly stated here that based on my calculations, they don't even need a capital raising right now, never mind another one in June 2009.

To get more funds out of me at the moment, management will need to:

a) convince me of the NEED for this placement, which will include demonstrating serious commitment to reducing expenses (i.e. executive salaries)

b) show some support for the company by having management (on $1.4 million salary!! - of OUR money!!) buy some significant number of shares

c) convince me that this will be the LAST time they are raising capital, by revealing a path to commercialisation, based on reasonable assumptions, with milestones they will report on monthly.

Frankly, I don't see any of this happening, but I will attend the AGM. You never know, miracles happen. Like you, this is one product that I really believe in, I think with proper management, this could become the next Cochlear.

Cheers,

BridgeBaron