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NuSep Ltd (ASX: NSP). Attached is the Interest
Bearing 14% Converting Notes Prospectus, this is
a general Offer and open to both current
shareholders and potential investors. You can
obtain a print copy by calling NuSep on (02)
89779000 or email
info@nusep.com.
View the prospectus and other company updates on
our website
www.NuSep.com
or by direct link to the prospectus
http://www.nusep.com/cms/images/pdfs/nusep_prospectus_20080416_v1_final.pdf
Dear Fellow Shareholders and Potential
Investors,
It is with great pleasure that I invite you to
subscribe for the interest bearing 14%
Converting Notes described in this prospectus.
The proceeds of this capital raising of
approximately $5 million will be used to expand
sales and to complete the IVF clinical trials of
the SpermSep CS10. You should read the
prospectus for the full terms of the offer but
the primary terms are:
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Class of securities to be issued
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Converting Notes
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Interest Rate
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14% pa
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Interest Payment Dates
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30th
September and 31st
March each year
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Note Term
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3 years
automatically converting on 30th
September 2011 (if not
previously redeemed or
converted)
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First Interest Payment
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30th
September 2008
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Security
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Unsecured Notes
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Issue Price
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$10 per 14% Converting Note
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Notes Conversion Rate
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40 shares per Note or 25˘ per
share
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Maximum Application
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1,000 Notes ($10,000.00)
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Minimum Application
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50 Notes ($500.00)
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Liquidity
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The Company will apply to have
these Notes Listed on the ASX
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Our April 2008 newsletter (lodged with ASX on 15
April 2008) outlines the successful clinical
trial of the SpermSep at the Westmead Fertility
Centre. There has been media coverage of the
SpermSep over the last month including the
Channel 7 Sunrise Show, Sky News and other print
media.
NuSep has made significant progress since
listing just under a year ago. Major
developments include launching the MF10
instrument, achieving improved gel production
rates and completing the initial SpermSep CS10
clinical trials. We have an active product
development team who are working on developing a
range of new products to be launched over the
coming years.
As outlined in our IPO prospectus (lodged with
ASX and ASIC on 14 December 2006), NuSep
initially concentrated on improving the Gel
manufacturing process so that Gel sales could be
used to achieve a breakeven position or profits.
I am pleased to report that we are well on the
way to achieving a breakeven position.
Manufacturing pass rates and production volumes
are on target and Gel sales have increased
significantly. Sales growth has been
particularly strong since the appointment of
Barry Holman as Vice President of Sales in
January 2008. As a result of this sales
growth, NuSep has established its own sales and
distribution office in Atlanta, US.
The Company currently is on budget and driving
to achieve profitability. However,
additional funding is necessary. The Board
considers the best way to raise these funds is
to offer a 14% Converting Note. Further,
in order to minimise the interest expense, the
Board has limited the number of Converting Notes
to 500,000 on a first come first served basis
with priority being given to the Company's
current Shareholders. As a sign of our
confidence in NuSep, the Directors have agreed
to underwrite the Converting Notes issue to a
maximum of $1million, subject to Shareholder
approval.
We have set the minimum investment at $500 and
the maximum at $10,000 in order to cater for our
smaller shareholders. Below is a table
setting out some examples of investment amounts
and the correlating number of Converting Notes
and shares.
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Investment
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Converting Notes
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Shares on Conversion
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$1,000
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100
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4,000
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$5,000
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500
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20,000
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$10,000
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1,000
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40,000
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This prospectus contains detailed information on
the proposed offer of Converting Notes and
recent developments in NuSep's business. I
recommend you read the prospectus carefully
before deciding whether to invest in the
Converting Notes. If you have any
questions, you should consult your stockbroker,
accountant, lawyer or other professional
adviser.
Should you have any questions regarding this
offer please contact the Company Secretary, Mr
Prakash Patel on 02 8977 9000.
Finally, NuSep will hold an Extraordinary
General Meeting (EGM) on Friday 30th
May 2008 to approve the issue of the 14%
Converting Notes. We will provide a
further update on developments at that meeting
and I encourage Shareholders to attend. As
a general comment, I have been pleased by the
number of Shareholders who have contacted me
regarding their investment in NuSep. Our
products address niche markets and it is often
hard to gain information on these markets.
Once again I would like to thank all
Shareholders for their continuing support of the
Company and look forward to meeting with many of
you on Friday 30th May 2008.
Yours sincerely,
Nicholas Caré
Chairman
About NuSep
NuSep (ASX: NSP) is a publicly listed life
sciences company that sells products into the
global bioseparations market. The company has
offices in both Sydney, Australia and Atlanta,
USA.
With a 30 year heritage in biological
separations, NuSep has forged a world class
reputation for its innovative yet simple
biological separation techniques including the
world’s first IVF sperm separation device. In
short NuSep has redefined the BioSeparations
market through innovation and simplification.
NuSep’s world renowned research team has
developed an extensive portfolio of patented
products. In all, NuSep currently
manufactures, distributes and sells 55 products
to customers in the USA, Europe, Asia and
Australia.
NuSep Products:
Gels – NuSep offers two precast gel ranges:
iGels, innovative gels including long life gels
with a 2 year shelf life: and NuBlu, high
quality gels at an everyday price.
Separation Instruments – NuSep has developed two
unique biological separation instruments.
The first instrument released in February 2008
can separate biological samples into 8 fractions
for use in the proteomic market. The
second instrument separates sperm for fertility
treatments such as IVF and is presently
undergoing clinical trials.
Biological Products – NuSep supplies research
grade biological products manufactured using its
unique separation technologies. These
products include human IgG and Albumin.
For more information about NuSep please visit
the company’s website
www.NuSep.com
Contact:
Prakash Patel
Chief Financial Officer & Company Secretary
+61 2 8977 9000
prakash.patel@nusep.com
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