Safeplus International Holdings Ltd. (ACAI)

[sunspotter]

"The 4.923mm shares of stock used to acquire the initial 35% interest were returned to BIPH when Myotech was dissolved. As you indicate these shares held a carrying value of roughly $8.4mm. When they were returned to the treasury the value was $68,923 resulting in a write down of $8,398,775 which is part of the asset impairment charge. $6,211,741 was then recorded as a gain in minority interest on the financial statements."

There's no suggestion that the 4.923 million shares were held throughout those years by Myotech's private owners. In fact it's entirely possible that they sold them at that time or shortly afterwards, and knowing that Myotech's owners are smart people, I wouldn't be surprised if they did. Then it wouldn't have been too difficult to buy the same number of shares when the company was dissolved for less than 1% of the money they originally received.

"I believe that Management knew exactly what they were doing and are executing the strategy beautifully."

In that "Management" were essentially the same people as Myotech's owners, I certainly wouldn't dispute that.

What I do dispute is that any part of this transaction was or is in the ordinary shareholders' interests.

By your numbers, $17.4 million in value has been lost from Biophan's assets while paying for the Myotech device. It's clear that nobody anywhere is beating a path to Biophan's door to gain rights to develop the Myotech CSS device, and that's (partly) reflected in the true worth calculation of $1.7 million that Myotech IP now carries on the Biophan balance sheet.

From the shareholders' perspective, this so-called strategy is a disaster.

By using this cash to pay the private owners of Myotech (essentially themselves, let me emphasize once again), they're down to five to seven months' cash starting from today - less than 1.5 million dollars - , and seeking to increase the existing authorized issue of shares by over 200% to 800 million for purposes that can be readily surmised from their past history.

They have had to insert a going concern warning in their 10Q, and if they don't get a partner and soon for the Myotech CSS device, they're going to have to "raise additional funding".

And the poor long-suffering Biophan longs know exactly what THAT means.