Replies to post #39 on Cobalis Corp. (fka CLSC)

[Mmarion]

Reply to urche: what is the company running on.

Well, cash is certainly tight for us, but our bills are paid as well as our employees, and we have enough for G&A and operations.

We are now doing a larger funding round, and are in discussions with a number of very substantial institutional funds. To date the majority of our funding has come from high net worth individuals and the founding family of the company, but it is time now for us to step up to a more institutional level of support.

There are also several very active discussions in progress with potential licensing partners who might be interested in various marketing rights and licenses.

Other than G&A operational costs, our funding requirements come in spurts when we need to engage various clinical trials. Over the next year or so we plan to accomplish the following:

1. Conduct the second required Phase III Clinicial Trial - this is planned now for the late spring, and it looks like there will be approximately 1,100 patients enrolled.

2. Start Phase 2b clinical studies for the migraine indication.

3. Conclude a distribution agreement for Australia and support that marketing launch.

4. Conclude a distribution agreement someplace in Europe and support that marketing launch.

These are the major objectives for the next 12 - 18 months, and we'll bring in the funding required for these under the best terms possible at the time, with the least possibly dilution effect for our shareholders.

While we are not in a position today to announce a major round of funding being completed, we are well into such negotiations with a number of very significant institutional funds.

We get term sheets all the time for money, and there are a lot of funds that would make an investment now, but unless the terms are fair and equitable we will not engage any funding unless the deal is a good one for the company and its shareholders.

As I promised, I won't ever hype our situation, but I can tell you we are actively in discussions about long-term funding right now, and I am optimistic. Other than G&A which we are OK on, we are working on the specific cost requirements for the above milestones and studies being planned. FYI, the first Phase III Clinical Trial for 714 patients cost approximately $3 million all in.

I will keep you posted.

By the way, I can also be reached by email at [e-mail] if you - or anyone - have any questions.


M. Marion