InvestSmart's Narhex Limited Discount Share Placement Offer

黑山老妖

Narhex announces Rights Issue and Placement to raise up to $2.8M...
Dear xxx

InvestSMART does not usually promote private placements because we have enough work with IPO's and managed funds.

However we have made an exception for Narhex Life Sciences (NLS) for the following reasons:

1. InvestSMART has had a long association with Narhex. In fact we are one of their original investors owning more than 7 million shares. Yes, we are a big believer;

2. Ron Hodge, Director of InvestSMART is also a Non-Executive Director of NLS; and

3. We believe 2007 is going to be a good year for Narhex, and this placement is very attractively priced.

We are pleased to invite you to participate in an Offer of New Shares in Narhex Life Sciences at an issue price of 5 cents per New Share, to raise proceeds of up to $1.2 million for Narhex Life Sciences. This Offer will be open in conjunction with a Rights Issue (via a prospectus) being made to existing Narhex Life Sciences' shareholders to raise up to a further $1.613 million.

InvestSMART will be participating in the rights issue.

We are only sending out this email to some of our more active clients because we do not have enough stock for everyone and we do not want to mass market the discount.

In the past year, 2006, Narhex Life Sciences has made significant progress towards its ultimate goal of building a company based on the clinical and commercial success of therapeutic and diagnostic products, which are used to manage patients with HIV infection.

Narhex's initial goal of developing an anti-HIV protease inhibitor (DG17) and bringing it to market is very much on track. In the past year, Narhex Life Sciences has successfully completed two key clinical trials that extended their previous clinical studies and confirmed that, with proper formulation, they can obtain both predictable and therapeutic drug levels, which require only low doses of DG17 to be taken by patients.

Narhex is developing an anti-HIV protease inhibitor and have successfully made the transition from making milligram quantities in the lab to synthesizing kilogram quantities in a FDA-certified manufacturing facility. Narhex expects to receive 20kg of DG17 (enough for 50-100,000 doses of DG17) later this month.

Money raised through the rights issue and placement will go towards a "Phase IIA" study of DG17, planned to start this quarter, with the goal of determining the dose of DG17 which Narhex will use in a "Phase IIB" study hoped to start later this year. The Phase IIA study is small and quick (<24 patients, treated for 2 weeks) and in addition to discovering the right dose of DG17 it will provide further support for the drugs efficacy and safety when given to humans. This study will also define how well the new formulation they've developed (enteric coated to protect DG17 from gastric acid) is being absorbed.

Successful completion of the Phase II A study (and they're quite confident it will be successful based on existing clinical and preclinical information) should attract recognition from the international pharmaceutical and biotechnology industry, and may result in licensing opportunities (with milestone payments and royalties attached), all of which should be reflected in shareholder value.

The Phase IIB study is designed to show that DG17 is as "equivalent" as other anti-HIV drugs, and involves treating 100 patients with DG17 (in combination with two other "backbone" anti-HIV drugs) and another 100 with standard 3-drug anti-HIV therapy. Treatment is given for 6 months, with an option to continue if it is successful in individual patients. As 90% of anti-HIV drugs that have completed Phase IIB go on to registration and sale, completion of this Phase IIB study should have a substantial impact on the value of DG17 and hopefully its shares.

In addition, Narhex have acquired an HIV diagnostic company, Cavidi AB, which has developed and sells innovative low cost and easy to use tests for monitoring HIV treatment where laboratory resources are limited. Revenues from international sales of these HIV monitoring diagnostics are tracking nicely (showing strong year on year growth) and ensure that Narhex Life Sciences has a developing commercial presence in the HIV scene.

Along with prolonging clinical trials money raised under this offer will be used to expand the sales staff and are getting product registration and sales in the large markets of Asia, specifically India, Indonesia, Vietnam, Thailand and China.

InvestSMART has been given first rights over $1M worth of this placement up until 20 April 2007. If you are interested in this offer please call us ASAP on 1300 880 160. For further information and to view the prospectus please visit www.narhex.com.

Regards
The InvestSMART Team

Devil_Star

I read about this one before. Very risky one, a 5c stock. The current share price is very close to the placement one. Don't forget, InvestSmart gets commission from your placement and so they will try their best promote Narhex.

黑山老妖

This is just sharing information. Biotech is risky at best. Personally not very interested. But some ppl might have bigger risk appetite.

Devil_Star

原帖由 黑山老妖 于 2007-4-19 11:05 发表
This is just sharing information. Biotech is risky at best. Personally not very interested. But some ppl might have bigger risk appetite.

Don't worry mate. I appreciate your information sharing. I just expressed my own feelings.
Smart risk is worth taking for me (im in biotech stocks AVX & BTA), but this one to me, is way too risky.