todays agm, page-24

Hi everyone,


As Reiner said it was a bit disappointing to see roughly only about 35 people attending the AGM (even though it looked like they were expecting that kind of number, as there was not much more free seats left), but the board looks pretty damn good, positive about the future and quite confident of what lies ahead, Especially Neil Covey (Executive Director of Sales & Marketing), who said is lot more conservative.

They are all very opened and happy to chat to all shareholders. They are very much trying and working on improving the share price, hence the appointment of Alan Beasley. Apparently they are working very closely with brokers and will be getting an Institutional review of the company.

The board is very confident in the HDA - the functional prototype was on display for demonstration, and it very impressive to see it how it works. In Q1 2011 expecting 200 pre-production fully functional models to be delivered, for the big players to play with, so they can see and adjust it for their individual drug needs. The size of it is little bit chunkier the the usual Asthma inhaler, but as Peter said the final machining and composition of course will be much glossier and user friendly. They do not need the big pharma to go ahead with this device, as they can start using it for generic drugs. And as Peter said the doctor HAS TO prescribe drug that is less harmful and not the one that is cheaper, of course you can request the cheaper option. But saying that, the HDA will be using only 10% of the active drug so Far less side effects and more results, as it is delivered though you lungs, which is optimal delivery solution.

As to the "Body Shaping - See ?Love Handles? Disappear" product - they eventually came after the AGM was officially over and did a demonstration. It was very encouraging to see the MD - Peter to undergo the test and demonstrate it. Even though the guy who invented it and was administrating it (as it is done by needle - something like botox) said he did not want to do it there (meaning the restaurant where the AGM was haled at), as it should be done at a clinic. But the demonstration went ahead and Peter got injections to his right "love handle", but after a third injection had to sit down and had to be given some sugar (coke and ice cream) - as this is the natural reaction of the brain and body to the sudden change in fat cells. The body tries to replace those dissolved "fat cell", by withdrawing all the sugar from the blood. That`s the reason why this should be done at a clinic. But after about 10-15 minutes Peter was back on his feet and you could ACTUALLY see the difference to his right "love handle". If I have not seen it I would not believe it.
AS Peter said "With regard to the love handles - well one side of me is in fact on the leaner side - quite amazing, although quite obviously as evidenced yesterday, treatment should be conducted in controlled clinical conditions." They apparently having some MOU`s signed with guys in hong-kong, china, france. This product will be mainly for beauty salons and beauty clinics.

In Regards To BB - I think so to he was at the AGM and got his way and could ask questions to Peter. He got quite a bit sour and angry and quite offensive. Part of Peter's reply was: "sell your F%$#& shares and get the hell out", then he apologised for the language and answered his questions.

Peter is well aware of Hotcopper.

In conclusion the Q2 2011 should be a break even point (I know they said that about 2010, but this was caused by legislation changes and government agencies delays). The Pharma plant is very much expected to be licensed, the site visit and inspection is happening right now and the result will be within 30 days. At this stage they have 15 contracts and is growing. Apparently there is shortage of paracetamol in Canada, so they will not have problems to sell it.

I asked Peter if they are thinking about consolidation and his response was, yes and no. It is more likely No as they are really expecting the share price to rapidly improve and that would only stop it.
The 2010 has been a year of realisation and 2011 will be a year of materialisation.

DYOR