the rub on pno

MLPH has traded 150,000 shares at around 50 cents in the first hour of trading on the NASDAQ / OTCBB. With consummation of the PNO/MLPH deal due next week IMHO we can assume that the valuation of the PNO equity in MLPH will be valued at around US$44,000,000. This number is re-inforced by the approximate US$3,000,000 dollars of shares traded (at around 50 cents) in the last two weeks as the deal deadline approaches. By comparison the dollar value of shares traded in PNO on the ASX has been anemic (although the technical signals are very healthy). This is very strange considering that PNO is on the verge of pulling off a very major opportunity to self fund the trials and development of one half of its tripeptofen development program. PNO will have the ability to raise millions of US$ to fund this program without diluting PNO stockholders. So PNO will NOT have to go to the local brokerage community begging for small sums of money and issuing hundreds of millions of new shares.

IMHO PNO will be able to easily raise US$3-10,000,000 thru MLPH without batting an eyelid. Assume for a moment that the local human trials that are now underway are positive. What happens to the MLPH shareprice?

PNO has already told its shareholders that 90% of the risk in the commencement of human trials concern the toxic effects of new drug compounds. In the case of tripeptofen we know that it has been (in its very diluted form) an additive in thermalife and sold in Australia for over seventeen years. So PNO claims their new compound is safe according to this long documented history. PNO is also testing its compound as a localised "rub on" cream avoiding a whole complex and very expensive set of issues dealing with ingestion and "whole body" effects.

I am not a biotechnologist nor do I claim to understand the science of developing new drug compunds BUT I really like what we see here. We have moonshot potential. The oppies at 2 cents look like 5 to 10 baggers. IF MLPH gets positive results then the U.S. stock will fly. At US$1.50 for MLPH PNO shares would value at 80 cents. The PNOO oppies would turn into a 40 bagger shot. I love the odds.