Update from the previous post with SPP apparently set for 7.5c...

Update from the previous post with SPP apparently set for 7.5c for the end of June.

There are huge bunch of daytraders at the moment and she has been a volatile stock. But there is plenty of blue sky over the next 12-18 months.

1. The company announced on March 11 that it had secured a $12 million equity draw down facility from Fortrend to support registration trials of CVac. The net effect of this arrangement is that it has enabled Prima to approach other potential investors on a more confident basis, demonstrating that a key risk with the company (funding) is essentially underwritten.

2. Fortrend were given their AFSL license back when the court of appeal overturned ASIC original decision. Fortrend might appear or have been dodgy in the past(Behind every great wealth is a crime). But the facts are they have deep pockets and it is an equity drawndown facility that can be taken by the company at anytime and the company still hasn't done so. 10% discount to current shareprice works best for the company as the shareprice continously trades higher. The company hasn't used it yet, what does that tell the market?

3. Laurence Freedman is a billionaire and made his investment early last month(shares were trading around 3c) of $1.5M. The price he got was 2.6c and there are ASX rules to the maximum discount of 20% of VWAP. Importantly these kind of investors work in syndicates by also getting their mates set as the company hits milestones with the FDA etc. Having investors with deep pockets and are able to hold long term is essential to get a multibillion dollar drug on the market.

4. Last SPP was not supported by shareholders at $0.005. It could be seen that shareholders were willing to let the company go bust. The key risk was not having enough cash which has no been mitigated. Next SPP is not needed but IMO will be strongly supported. Highly ironic now that it is not actually needed.

5. Now shareholders get another chance to put in $5k each. Could raise upto a max of $10M this way. Most likely to be about $2M but shareholders will share in the upside over the next 12-18 months.

6. The shareprice and market cap are a key to funding. The higher the SPP the actual better for the company to do other deals. It's the classic "prisoner's dilema" game theory.

7. A quick internet check Ian Frazer advises the following companies. CSL, Merck Sharpe & Dome, Schering Plough, Glaxo Smith Kline, Hawaii Biotech(vaccine for Dengue Fever), Genera Biosystems(Cervical cancer diagnostic) and Prima Biomed(ovarian cancer vaccine). Last time I spoke to the company they told me he doesn't get paid as it would bias his opinion of the technology, his involvement is to get a cancer vaccine onto the market very alturistic. They also have other scientists who are making the same contribution but punters like you and mean just haven't heard of them. Speaking to the company is a great source of information for your research on the prospects, its how I got a start on my info.

8. New management team has done an excellent job turning this company around in the last 12 months. They are focused. In 13 years of human testing in phase I and II trials the company spent $31M developing the cancer vaccine. It could of been all lost if the new management didn't remove the risk.

9. Comparison to Dendreon is valid from the FDA perspective. FDA knocked Dendreon's pivotal trial result back in 2007 and they had to repeat it. A clear regulatory path means the Prima ovarian cancer vaccine has transparency in designing its protocol to hit the right endpoints for approval and market revenue.

10. Cancer vaccines have shown to be safe and non-toxic. Dendreon will carve the way with a new standard of care for the medical onocology community. What is most bullish for Prima is that there currently is no treatment for ovarian cancer, hence Orphan Drug Designation with the FDA. For prostate cancer and for Dendreon there already is a few approved treatment regimes and prostate cancer is not so dire. But the cancer vaccine is a better safer option for prostate patients. They will make billions because patients don't like nausea and all of the other side effects of chemo. Cancer treatments don't have sales teams pushing drugs, oncologists inform themselves from journals and conferences and make recommendations to patients. Patients also do their own research online. Wouldn't you if you were diagnosed with cancer and find the best treatment.

11. Professional institutions will invest in this company once the FDA IND is cleared and also once Dendreon gets market revenue. They usually can only invest in a company once the market cap is above $50M. In the meantime it is a lot of small fractional ownership.

From the march 11 announcement "In the latest edition of the prestigious scientific journal Nature America, Inc. CVac™ is one of the few selected cancer vaccines in late clinical trials and the only vaccine for ovarian cancer indication".