PROTALIX BIOTHERAPEUTICS, INC. (PLX)

[Phantom Lord]

I don't know if I would count on the $6 million of 4.5% notes being converted for shares. There are certain circumstances, that we do not know, in which the holders of the notes can get face value for the notes rather than shares. There is also a possibility the conversion rate changes. I think if it did they would have to disclose that but I'm not 100% on that. While it would be nice to settle those notes with shares given the attractive conversion rate I won't be surprised to see them settled in cash. We will just have to wait and see. Regardless, even if they settle them in cash it won't be bad. With the sales to Brazil $PLX should have more than enough cash to cover $6 million if need be. So in the end whether they settle the notes in shares or cash I see it as a non event. Debts need to be paid.

The 4.5% notes due in 2022 & the 7.5% notes due in 2021 I would hope are settled mostly in cash but I think your estimate of 40% - 50% in shares & 50% - 60% in cash is a fair guess since there is no way to discuss this in absolutes.

I would very much like to see PRX-102 approved and profitable by the time these notes even come due. That would prevent the need to issue any more notes. Of course that is also a wait and see.

In any event I think your assumptions are fair. I don't anticipate the repaying of these notes, whether in shares or cash, to be much of an issue. They have proven that if possible they would rather settle in cash so lets hope they continue to do so as much as possible. Dilution should be kept to a minimum, IMO. Lots of things will happen between now and 2021 which I feel will only benefit us.