Healios KK Ord Shs HLOSF

MF Disclosure or lack there of

[venturevest]

As you can see within the  text of the Nr that MF needs  permission to exceed 20%  of the  IO prior to any  wt  exercise..... Presumably  this  permission  would also be  required to do another  10MM  share  placement.,.... Thus the  only  conclusion is they  have  been the  seller  whom  brought the  share  price  from 10  down to .035 with the  intent  of  replacing those  shares  with additional  flow through.

Thus the end result  is the  manipulation  of  HLO's  share  price  via  massive selling to accomplish a tax  advantage. I warned  LB  of this  earily this  spring and  suggested a  10 cent  financing  but   she  declined..... now   suddenly   her  statment  is "  MF  has   provided funds in  our time  of  need..... I think the  shoe is on the  other  foot..... HLO  is  providing a cheap  flow  through  tax  shelter  in it's time  of  need.

The are  similarities to this  type  of  relationship.... but   they are  not  in the  financing context... I'll  leave that  on to your  imagination.

I figure  MF  will   put  pressure  on  HLO to  consolidate the  shares  10 for 1  and the  whole   thing will  proceed to  round 2... The  float  is  geting too big  now  for  MF to  control the  market in  both  direction. Of  coarse   this  requires  the  co operation  of  managment to  provide the  FT placements  when the   stock is   at  its  lows.

I suggest  that an alternate  slate  of  managment  be   selected.....   and I  would  suggest  that   the  VMS   mng  be  asked to  make that  bid  in an  effort to  consolidate these   HBM  plays...... HLO  is  more  advanced  than  VMS  and  not in the  park.... and  will  likely  be in  production  long before  VMS.....

Now  you  might  ask  why  is  HLO   trading at  such a  discounnt to it's intrinsic  value......  I think  one  only  needs to  look at the  managment to see  why!

By the  way that  was  my  1,620,000 from  Wolverton  on  Friday...... Will  keep the  other  half  till I see  what the  shareholders  do at the  AGM..... hopefully some  attend  a  take a  pound  of  flesh for  each  deal  they  have  done  with MF.

I figure  that MF  is  out  of  tradable  stock right  now  at there  has been  no  disclosure...... They  do  have   a lot  of  .075  paper so   10 to 15 cents is about  it...... But I  doubt they  would  exercise as this  would  provide  HLO  with  cash  and  that  would   reduce the  dependancy of  HLO  managment on  MF  for  funding.

It is  my  opinion theat  MF   will not  exercise their  wts  untill a  multiple  of strike  price  is  reached  as  this   would  negate a  future  FT  in the  fall..... I think  post  consolidation   a 20 cent  financing  FT  and  hard  dollars ....Best  guess.