targets, page-41

Like everything in business it will come down to price.

Our current market cap is circa $170m.

Post a HA-i licensing deal with cold hard upfront cash from presumably a major pharma it will force the market to price HA-i opportunity and the wider HyAct platform. It will give the metrics for the market to come to a valuation.

Management will work backwards from there and see if the market is then pricing Fonda appropriately on its (much larger I hope) revenue stream based on our market cap at the time.

If this amount is less than what some buyer is willing to pay for Fonda then I think it will be on for a sale because they will be creating significant value. In fact you could imagine the share price jumping even on the announcement of a sale if for a good price. EU/ROW approvals and the possibilities of the Aspen deal might be the revenue kicker someone needs to lob a good bid. Dr Reddy's probably have a right of first refusal under the licensing agreement as well but in all negotiations we will be negotiating from a position of strength given the Ha-i licensing money already in.

Post a special dividend or capital return it will then mean a lot of shareholders may be largely free carried for HyAct.

Really I cant fault management's logic here. Sounds bloody good to me.