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Paramagnetic Beads and QL Analyser are Proprietary Products

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Message: CGNH retains Burrill Merchant Bank

Jag-This,

I was not too surprised that CGNH did not move yesterday with the announcement regarding Burrill. My initial thought was to place new AON orders but then decided to wait it out and see what the market response was before I acted. In hindsight, I made the right decision.

I have been thinking about the implications of why CGNH retained Burrill; and have come to the conclusion that I have "over-thought" the matter. IMO, the answer is quite simple, CGNH has retained Burrill to negotiate deal terms with the Top 5 IVD Companies; once CGNH understands the terms available to them at this stage of development of the POC analyzer, they can construct spread sheets that compare the value of these deals to the dilution awaiting them if they raise the money they need to complete development of the POC analyzer. Burrill should be able to provide this information to CGNH by the end of the Quarter.

IMO Siemens and possibly others are conducting similar analyses, constructing similar spreadsheets and preparing to offer terms that will induce CGNH to partner with them now to ensure they capture the rights to the analyzer.

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