update, page-14

Thats probably about right pesa, nobody knows for sure that this will take a run upon the data to be announced shortly and the reaction to extremely positive results upon trial completion fizzled through lack of interest which was disappointing given how good that actually were.

The SP is in a bit of a catch 22 at the moment. There are clearly options holders who purchased on a speculative basis with no intention or means to convert all of the options that they held. Fair enough but given the SP is hovering not a long way above exercise price some are finding that they face expiry with no market to sell them into if there is mooted reaction to this next results release.

The result is obviously that some are getting cold feet and taking the loss rather than risking expiry. This is forcing the options price down in a spiral. The fact that one can buy options so cheap with an exercise price of only 10c means that you would be mad to pay asking price for the heads. Why would you buy heads on market at 12c when you can buy options at 1c or less then exercise them for a 10% saving on your overall purchase price. Catch 22 really.

Now if somebody takes a big snap at the heads over the next couple of weeks the stalemate could be broken. With heads heading up the options will be well in the money and have a greater value and more liquidity thus allowing those that need to liquidate before expiry to get out. This would remove all the downward pressure... obviously.

Personally I'm not counting on that although I like to think it could easily happen. I suspect that about half of the options will not be exercised. This will reduce the dillution but still give the company some additional cash. Without the options as a cheap backdoor the heads will be free to be valued properly on their own and I believe that the SP will rise well above exercise price with or without a deal in the very short term.

As a holder of more options than I should have, I can say that it is my current intention of exercise all of them. I don't believe that it will be easy for me to acquire that amount of heads on market which is the primary reason that I started buying options in the first place. Exercising is the best and probably cheapest way for me to maximise my holding in this company going into 2012.

I am very confident about the future prospect of this company as I'm sure you guys are. 2012 looks likely to be a very significant year for Biotron. Nothing is guaranteed but I see this as a good bet and potential rewards beyond anything else I'm invested in.