Member Info for elrico

Peeps - SOH was very gracious with his time this morning. We conducted a Q&A session which I recorded and is available ON soundcloud. Topics in no particular order; 1 - I am wondering what market segments your new product launches are aimed at? You mention dairy, beverages. Is there a particular interest, priority for BOD? 2 - What sort of research and development has already took place? 3 - LP-LDL Formulation? 4 - SACCO's role seems to have expanded into research and development and funding thereof. I am guess they are as excited as OPTI BOD. Would I be correct in assuming this could result in even lower cash burn than currently? 5 - Cognitive health. You have previously indicated your interest in obtaining IP in this space. Is there anything of particular interest, like autism as an example? 6 - Dealing with large corporates and getting your own way. 7 - Misconception of interim losses 8 - Cash burn and funding hTTps://goo.gl/dn1nJR

It is rare indeed anyone using the word ramp ever identify the "ramp" and or counter the "ramp" with supporting evidence. IMHO there is little evidence to suggest TW/SP ramped or supported the SP. In fact I have countered the opposite, citing "imminent rerating news" or "news with telephone numbers by easter" which of course, the peeps not doing their own research thoroughly enough have held OPTI BOD to ransom over over optimistic timelines, which a man of TW's experience should have known better. A point I put to him, which he did not like, but hey, he can take it.

Revenues at this stage are not so important because the market is aware the commercial phase only got underway this May. There will also be a disconnect with GoFigure sales, in the sense that *Revital and *Iceland outlets (EXAMPLES) will have minimal data due to the dates they came online and the reporting calendar. We will have a slightly better idea with the year end results next April. I dare say the bears will most likely jump up and down suggesting GoFigure has been a failure because they will ignore the disconnect, ignore SlimBiome/GoFigure has reeled in TATA. At this stage, GoFigure sales will merely serve to preserve the "bulk" of £2m. Being a lazy sod, I can't be bother to check. I think they both came on stream early 2017. So you see, these and possibly Wholefoods will have just a few weeks of sales in the latest set of numbers. Aiagn, without checking, I think GoFigure sales were a mere £26k pm. We have a figure at least ;)

Andy - If you have c30000 share winging your way at say *20p at free it is not to be sniffed at. It mitigates against early paper-loss. Some PI's would have compounded their loss by throwing away the counterbalance. *Being my opinion the SBTX shares will be when they are paid out as a special divi.

Ian - I haven't forgotten. I posted the following on the other asylum earlier. There will be a disconnect with GoFigure sales, in the sense that *Revital and *Iceland outlets (EXAMPLES) will have minimal data due to the dates they came online and the reporting calendar. We will have a slightly better idea with the year end results next April. I dare say the bears will most likely jump up and down suggesting GoFigure has been a failure because they will ignore the disconnect, ignore SlimBiome/GoFigure has reeled in TATA. At this stage, GoFigure sales will merely serve to preserve the "bulk" of £2m. Being a lazy sod, I can't be bother to check. I think they both came on stream early 2017. So you see, these and possibly Wholefoods will have just a few weeks of sales in the latest set of numbers. Aiagn, without checking, I think GoFigure sales were a mere £26k pm. We have a figure at least ;)

Top sliding is a good method for preserving cash, re-entering to accumulate. However, in OPTI's case, could be a bad idea to top slide because you run the risk of losing out on SBTX and or SweetBiotix. This will become clearer once the SBTX mechanism, divi and ex divi dates become clear. Regarding revenues; I don't view 3 years as being the point which we start seeing them. Each commercial deal appears to have a 12 honeymoon period built, thereafter, 10% YoY sale growth built in. C Dec 2018 we should be able to gauge what each national deal is worth pa. Each (10x) could be worth £300-500k pa and with something like 10 national type deals - HLH and Pharmabio sized companies, the revenues will build quickly after the "honeymoon" period is over. There could be more because each RNS appears to develop more enquires. We then look at the the two globals yet to announce products, TATA, which has since expanded on the original deal, but this has not been made clear by way of an RNS. We then have the US MN. These are much more difficult to gauge revenues, but SOH predicts £3-5m pa and then we have the online and retail store outlets, which Christian is working on for SlimBiome. We should have a steady build up of revenue, which go straight to the bottom line. Once we have c12 months of revenues and then factor in the 10% sales growth we should be in a position to gauge the strategic brilliance and have a better understanding of how the business model works. Once this becomes clearer, the doubt is removed from the science, company strategy and renewed faith in the BOD.

Comparing LGG with LP-LDL® One of the key differences between the LGG strain the Optibiotix LP-LDL® strain is LGG is a recognized brand and LP-LDL® is not yet established. Optibiotix have significantly increased its trademarks as they extend the branding internationally. This creates "double IP" which is commercially attractive for companies as it gives double protection and from Optibiotix point of view the potential for separately licensing the brand and IP. You will have noted Optibiotix used LPLDL ® in its presentations and publications (see goo.gl/j7nHqv presented at ProBiota) to start building up market and brand recognition, this is a key step forward. The key differences between the LGG strain and Optibiotix's LP-LDL® strain are:- a. LGG is a recognised brand and LP-LDL® is not as yet established: Optibiotix has significantly increased its trademarks as they extend the branding internationally. This creates ‘double IP’ which is commercially attractive for companies as it gives double protection and from our point of view the potential for separately licensing the brand and IP. Optibiotix used LP-LDL® in all company presentations and publications to start building up market and brand recognition. b. LGG has numerous supporting scientific publications: Optibiotix have started the process of presenting and publishing the data from the LP-LDL® strain. They will also be publishing data on the mechanisms of action and potential ways of enhancing LP-LDL®’s cholesterol and blood pressure reducing effect. They will also be carrying out additional human studies in new markets with partners. These will include more patients with elevated levels of cholesterol. c. LGG has Commercial sales. These are for general health applications and are in multiple formulations with numerous partners allowing global reach. LP-LDL® has no sales but is following a similar ‘Coffee Bean’ model where it sees its LP-LDL® in multiple applications, multiple presentations and formulations, across multiple territories. The reduces the risk of a single partner taking on the product and exploiting limited formulations in limited territories. d. LP-LDL® has been developed using a systemic and scientific rational after screening over 4000 strains. This gives it a stronger scientific foundation than LGG. e. LP-LDL® has a known mechanism of action. This is important in some regulatory frameworks, particularly where there is the potential for it to be sold as a pharmaceutical product. There is no known mechanism of action for LGG. A significant value adding difference in favour of LP-LDL®. f. LP-LDL®’s mechanism of action has numerous potential other applications including C.difficile infection, diabetes, weight management, and stress/sleep control. g. LP-LDL® is targeted at a specific health condition. There is

F3 - If you don't me expanding on your post. Licensing Model Optibiotix license a strain to the manufacturer who has the license to manufacture and distribute the ingredient for a 50% of the profit. This is similar ProBi’s functional food model above, but Optibiotix have a higher margin. Optibiotix also license the strain to producers who will buy the strain from the manufacturer and incorporate it into their own products using their own brand and in house capabilities. They will license the IP (patents and trademarks) and pay royalties on all products sold. Optibiotix will also partner to produce products incorporating ingredient in different formulations for different markets (e.g. health ageing) and presentations (soft gel, hard gel, capsules, tablets etc.). These tend to give lower percentage royalty levels (7-10%) as Optibiotix’s strain is just one component but have a higher net price giving a nice return. This is similar to ProBis consumer model where we would expect to see these products sold online by consumer partners and in retail outlets like Wholefoods, Boots, and Pharmacies etc. The overall aim of this approach is to appeal to as wide a range of partners and access as wide a range of channel outlets as possible. This takes longer to develop than a single license deal but spreads the risk and tends to give higher returns over time. If one area is progressing faster than the other e.g. on-line sales, then the focus on that area to progress. Deals will require LPLDL ® or Slimbiome® trademark to be shown on all products building up the brand (e.g. Intel inside). Optibiotix will support this with further human studies in overseas markets and extend the application areas. If this works well the company should be able to build up revenues in the £20-30m region in the future giving a valuation for Optiscreen division alone under current industry examples in the region of £200-300m. Perhaps this seems wishful. However, ProBi’s valuation of £500m at today's value on £25m sales in 2015 accounts. Valuation on Probiotic market on 10-20x industry .

We need the seller to make the market and move up. If we don't the usual method is for the MM's to mark the shares down to create volume for potential buyers. They don't typically move the SP to attract buyers, it the opposite. However, each company is different due to liquidity and usual high volume. OPTI is illiquid with very little free float, so usually, the MM's will shake the tree is they have an order to fill at a set price.

part3 4. I am sure shareholders who have worked in the consumer goods industry understand there are commercial sensitivities over the launch of products and they should not mistake ‘radio silence’ for lack of activity or progress. Tata is a substantive partner and shareholders who have met me will recognise I won’t breach commercial sensitivities, particularly as we hope this is the first of a number of agreements. Investors should not expect a commentary on a commercial agreement which will always have confidentiality clauses for obvious commercial reasons. We will update investors on any significant change to the agreement but we anticipate SlimBiome being launched in India this year as announced in the agreement. 5. See above. Confidentiality is even more of an issue with US companies who will litigate to prevent exploitation of their brand name if their is any suggestion of a breach of confidentiality, particularly where a list company does so to influence its share price. 6. No comment on this. We have only announced on SBTX and will take a view on other divisions as they develop and in the light of the market at the time. 7. See answer to 3. We continue st see a major retail listing as part of our strategy for commercialising SlimBiome 8. We have to announce within 48 hours of any market sensitive news and can’t control timings. Practically speaking, Tuesdays is common as companies sign off at the end of a week and it's takes Monday to gain regulatory approval.

part2 SOH response; Whilst I don’t focus on the share price hour by hour I pick up drifts and recognise the normal summer drift which exists across AIM has created more issues than normal this year. My directors talk interview was part of a a number of steps to try to reassure shareholders. In summary there is nothing wrong with OptiBiotix and we are in a better position now than when the share price was 80+ as we are on the cusp of commercialisation so its an emotional rather than rational response. Its disappointing to see shareholders cash in their profits when the commercialisation stage of a company’s development typically creates the potential for substantial uplift in valuation. In terms of your specific points:- 1. The position with SBTX remains as it always has been as presented at the Investor Show and AGM presentation that our focus is on maximising the value of SBTX. This will benefit shareholders who will ultimately hold shares in OptiBiotix and SBTX. We cannot give a timing as this is market sensitive and will impact on both companies. If shareholders cash in their shares in OptiBiotix they will of course miss out on this opportunity. 2. Vitafoods was mid May and we were able to get a couple of deals across the line with smaller privately owned pharma groups before Europe started to wind down for the summer. These discussions have continued across the summer and investors should hopefully see the fruits of these discussions in the next few weeks and months. At this stage we will all be in a better position to judge the scale of the commercial opportunity. I would also comment that if investors are looking for reassurance the purchase of an additional 200,000 units by HLH weeks after launch as tweeted earlier this week gives an early indication of consumer interest. 3. We announced at the AGM that we were expanding our operations to scale up supply of both of SlimBiome and GoFigure. This is a precursor to any large retailer launching products and should give an indication of our confidence levels in this product. Large retailers who may have 2-3000 shops tend not to partially launch but require stocking and supply to all sites which requires scale up to deliver successfully on the opportunity. Christina has been working on this since March and we would hope to be able to announce any new commercial partners in the near future.

Peeps - A couple of observations sent to me along with a few of my own passed on to SOH. He was gracious enough to reply. 1: Ref SBTX shares - I have touched on this before. I don't think we agree, but PI's do side with my view, in the 4 months on we are no closer to knowing the outcome of the SBTX shares. Investors don't want to here this is complex. They were expecting news before the AGM then at the AGM. The SBTX carrot is being thrown into the green bin. 2: Talk of weeks and months has also spooked investors. They rightly or wrongly were expecting a number of deals announced post Vitafoods. We have had one either side with no indication other than "moderate revenues" with expectations this will grow in the second year. 3: Nothing appears in the pipeline for SlimBiome, other than TATA. 4: Nothing on the TATA front. Investors wondering why there has been no update? 5: Nothing on the secrete US multinational, rumoured to be P&G by TW 6: As we get closer to the SweetBiotix IPO PI'S are thinking another repeat of the SBTX. No thank you I'll sit this one out, some are saying to me. 7: What happened to the initial 200 store retail listing with a household name, rumoured to be Boots? 8: Almost predictable cycle of news on Tuesday's or Thursdays. This pattern needs to be broken because there is a clear pattern to the swings in the SP around these dates. I don't blame them for capitulating as some of them have been sat of substantial profits, but these have rapidly eroded this year after a stagnant 2016. I blame them for high expectation in a short window, but that is AIM investors, they are used to hype and of course, fraud. I fear OPTI may be tagged with the latter. That is not my thinking, that is the logic of the bears spreading malice. I get asked why are people selling now when we are so close to commercialisation on so many fronts? A good question, but not one for me to answer.

As primal correctly stated, OPTI cannot expand on details due to the complexity of TATA as a group of companies and time and money needed to seek separate approval for an RNS. We do know the original agreement has been expanded on, thus bigger and one can assume more lucrative.

:) You like to think so. However, I would expect it front and back, but this appears not to be the case. It will be interesting to see what Pharmabiota branding is like.

After making further inquiries, my initial comments regarding the branding LDL is wrong. LP-LDL is the trademark and the agreements typically stipulate that it should be displayed on all products as a graphic and as the strain in the same way Intel is used on PC’s. The distributor will then incorporate products containing LP-LDL into their own product ranges which typically have brand recognition in their countries. For example, as reported in the RNS, HLH have a well established and well recognised lactobact product range and have introduced the OPTI product into that range as Lactobact LDL control. This is similar to the way HP, Samsung etc would us the ‘intel inside’ brand in their PC’s. LP-LDL is a trademark and currently doesn’t have any brand recognition. This takes time to build up and with it, value. By initially working with national pharmacies, OPTI leverage these companies pharmaceutical status and national brand recognition by association and building up the brand without expensive advertising.

LDL CONTROL is on the label, THIS is what SOH refers to as "intel inside." These are HLH own branded product with OPTI's LP-(LDL) inside. Easily confused because we all refer to OPT'S cholesterol strain as LP-LDL always ignoring the open closed brackets used in RNSs.

You may want to do some more DD by testing OPTI LP-LDL in this new product. https://www.hlh-biopharma.de/shop/en/intestinal-health/1018.html The ship to UK - 9.8 eur postage if I remember rightly.

"Sacco will supply Pharmabiota. This is a one off agreement but we have been extremely impressed with the commitment of Sacco in introducing us to partners." The national partnerships deals are easier to negotiate due to the size of the company, which why HLH and Pharmabiota were announce very quickly when you consider when Vitafoods expo was. The prospect of 9 more as well as the larger deals and retailers. The revenues will quickly accrue to the point where the market will see value, possibly ahead of house broker guidance.

I would imagine SACCO, as you say, they are mentioned in the RNS. This suggests the European exclusivity for the LP-LDL strain, possibly this has been expanded. There has been no mention of this from OPTI. Nutrillnea has European exclusivity for production of products with LP-LDL.

hTTp://issuu.com/smallcapgrowthreports/docs/opti_sweetbiotixv1 Much more going on than initially thought.