Trilogy International Partners Inc T.TRL.WT.A

Son of Biovail - what happened

[LTOWNER]

Trimel wants a strategic transaction with a Major Pharma and this is unlikely to be concluded until Phase III Compleo results are published. By waiting, the Company hopes to receive a larger upfront cash payment and a larger royalty % of future sales with a partner that can compete successfully against Abbott and Lilly. This is the "time value most beneficial to shareholders" referred to in a recent press release. Financing is necessary in the interim to continue funding both the Compleo and Tefina trials and unfortunately must be done in the context of general market conditions that are very inhospitable to small cap funding. Management must believe the additional share dilution will be more than compensated by higher future royalties.

Trimel is like a 'Son of Biovail' - same strategy, same people. After Biovail developed it's first product using an already approved drug but using an enhanced delivery system, very similar to what Trimel is doing with testosterone, Melnyk brokered a 16-year marketing and distribution deal with Forest Laboratories Inc. in exchange for 35 percent of the drug's sales and $20 million in cash. I suspect a similar deal is being negotiated for Compleo and/or Tefina.

Investors were provided clues that by early May, management was aware the expected commercial transaction might be delayed and began taking steps to facilitate a private placement if necessary. While the year end report stated the company "looks to conclude a commercial or strategic transaction ... in the coming months"and this expectation was echoed by Eugene Melnyk on BNN in March, a May 8 PR stated "The company expects to conclude a transaction on a time value basis that proves most beneficial to shareholders." In addition, in the last conference call investors were told two issues were soon to be decided - whether to link Compleo and Tefina in an agreement and whether to wait for final results of the Compleo trial before concluding a strategic transaction. We were also told the bigger Pharmas were more risk averse and more inclined to wait it out.

As for the financing announced yesterday, the brokers certainly had their way with the stock! For anyone interested in how it works, I strongly recommend listening to knoll's link: https://www.netcastdaily.com/broadcast

Completed AR/DD study results were expected by the end of the second quarter of 2012, with the final report to be included in the CompleoTRT(TM) NDA. While expected to be positive and supportive to the NDA filing, this study does not test efficacy and would not have a significant favorable or unfavorable impact on partner considerations.