Here's the rest of it.

 

 

cleanser will offer a unique combination of infection control products to the consumer that will be

effective, versatile and safe.

A third product, the "Ready to Use" Disinfectant Cleaner that was announced by the company on

November 1, 2005, may be incorporated into a wipe for the retail market under the new identity as well.

Work on patenting of this technology is in progress so that the product can be now be made and

marketed.

Manufacturing and marketing in China

Progress is being made in establishing manufacturing in China but no firm start date has been

established yet. The Company has been advised that there is strong interest in the T36® Disinfectant that

will be marketed under a unique identity for the Chinese market. As announced by the Company on May

29, 2007, T36® Personal Disinfectant has been registered for use as a hand sanitizer and first-aid

ointment in addition to its current use as surface disinfectant. This expanded registration for use on

humans in China occurred far in advance to ALDA’s expectations and came at an opportune time

considering that the 2008 Olympics are being hosted in Beijing.

European Union (“EU”)

As announced by the Company on November 8, 2007, the services of Tincáli Tech Consulting

(“Tincáli”), located in the United Kingdom, have been engaged to assist ALDA with regulatory

matters in the EU. The first task completed by Tincáli is a competitive analysis of the UK market for

hand sanitizers. The Company is reviewing this information to determine the best way to position its

products in the European market. Next, Tincáli will define the process required for ALDA to market

T36® Personal Disinfectant in both the EU and the Middle East using the existing EU registration.

The product will most likely be marketed using the new “brand” that is being developed by Cowie

and Fox. Tincáli will then assist ALDA in coordinating the clinical trials that are required for EU,

US and Canadian registration of ALDA’s therapeutic products.

Therapeutic Products

The patent-pending T36® formulation is versatile, powerful and safe. It consists of a unique combination

of four active ingredients in very low concentrations that act in concert to disrupt the physical structure of

all infectious organisms rather than interfering with their metabolic pathways or genetic makeup. The

competitive advantage is a high degree of effectiveness and safety while preventing microbial resistance,

side effects or toxicity. A number of therapeutic applications have been identified and registrations for

these purposes are being actively pursued as funding becomes available. All of the applications are

topical so the extended and highly expensive clinical trials that are associated with drugs taken internally

do not apply to the products planned by ALDA. Registrations of the products could take place within 18

to 24 months after starting clinical trials. The remaining products are expected to be introduced over the

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ensuing 3 to 4 years. Global markets for the products described below are estimated to exceed $10

Billion per year.

T36® “Complete” Hand Sanitizer – The T36® formulation in gel form can be used in hospitals as a

superior hand antiseptic in nursing stations, patient rooms, hallways, washrooms, etc. to completely kill

all bacteria, fungi and viruses, including resistant infectious organisms. The T36® formulation is 3,000

times more powerful than the leading hand sanitizers and will also be marketed to consumers under the

new identity that has been established by Cowie and Fox and Group 270. Registration of an interim

product, an antiseptic hand cleanser, is in progress under a Category IV Monograph which allows

Health Canada to provide an automatic registration, usually within 60 days, of infection control

products that contain specified levels of anti-microbial ingredients. In the meantime, studies have

been initiated that will allow a product with broader claims to be registered in Canada, the EU and

the US. The expanded registration is expected to be achieved in Canada and the EU with 18 to 24

months. Complete studies for US registration will also be started in 2008 once further financings are

completed.

T36® Antiseptic - The T36® formulation with and without a biological dye will be registered for use as

pre-operative and pre-injection antiseptic in hospitals and clinics. Studies for the US, the EU and Canada

have started. The timing for registration of this product is expected to the same as for the T36®

“Complete” Hand Sanitizer.

T36® First-Aid Ointment and Topical Treatment- The T36® formulation in a spray and in ointment form

can be used on cuts, scrapes, insect bites, topical infections and other conditions that require a safe and

effective anti-microbial treatment. Studies for the registration of this product will be started on closing

of additional funding.

T

36® Vulvo-Vaginitis (“VVI”) Treatment - Yeast infections account for only one-third of allvulvovaginal infections whereas The T36® formulation can be used for treatment of all vulvovaginal

infections including yeast, bacteria, parasitic and combinations of all infectious organisms. Studies for

the registration of this product will be started on closing of additional funding.

T36® Microbicidal Gel - A diluted form of the VVI Treatment will be used as a personal lubricant to

prevent Sexually Transmitted Infections (“STI’s”). Charitable and private organizations are being

approached to assist with the testing of this product.

Commercial Products

As mentioned above, ALDA has received a Drug Identification Number (DIN) from Health Canada for

T36® “Ready to Use” Disinfectant Cleaner which is a safe, non-corrosive, disinfecting cleaner suitable

for industrial, commercial and institutional use. In addition to its use in a wipe for retail markets, the

product will be introduced to commercial customers through the distributors that currently sell T36®

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Disinfectant. The Company is in the process or filing a patent application for this new formulation and

once that is accomplished, the product can be manufactured and introduced to the market.

As announce by the Company on March 16, 2006, a DIN was received for T36® Disinfectant Cleaner

CONCENTRATE. This product is safer than competing products and is expected to be very price

competitive. It is intended for use on large areas, such as floors and walls that need to be cleaned and

disinfected. The Concentrate will be suitable for use in institutions, commercial establishments, cruise

ship lines and domestic use. A patent application is in progress and once this has been completed, the

product can be manufactured and marketed.

Patents

China – A Notice of Allowance has been received for the Chinese patent and issuance of the Chinese

patent has been requested. Expanded patent rights to cover new applications of the T36® technology

have also been submitted to the Chinese patent Office.

Australia - A Notice of Allowance has been received for the Australian patent. Issuance of the

Australian patent will be requested now that certain minor amendments to the patent have been

prepared. Expansion of the patent claims to cover new applications of the T36® formulation will then be

submitted to the Australian patent office.

United States - A Notice of Allowance has been received for the US patent. The Company is now

waiting for the final approval. Expansion of the patent rights in the US is also in progress..

Europe – The Company is in the process of filing additional information with the European Patent

Office. Once this is completed early in the new year, it is anticipated that the European patent will be

issued since patents have been allowed in the US, China and Australia with no modifications required to

the claims.

Singapore - A Request for Examination was submitted to the Intellectual Property Office of Singapore

on May 18, 2007.

Canada – A Request for Examination was submitted to the Canadian Intellectual Property Office on

September 19, 2007. An accelerated Request for Examination will be submitted so that review is

completed in months rather than years.

Foreign listings

As announced in a news release dated September 13, 2007, ALDA is continuing its work towards

registration of its securities and reporting in the US and appointed HLB Cinnamon Jang Willoughby,

Chartered Accountants as its auditors so that the financial statements may continue to be prepared and

audited in accordance with US requirements. As announced in a subsequent news release dated October

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2, 2007, the company retained the services of Stanislaw Ashbaugh, LLP, located in Seattle, Washington,

to assist the Company with U.S. securities law. In March 2006, the Company had completed the filing of

its initial 20-F registration statement with the SEC in the US but then management let the matter rest

while contemplating foreign registration strategies for ALDA. The decision has now been made to

continue to pursue the US registration with the assistance of Stanislaw Ashbaugh. The Company is also

evaluating the possibility of obtaining a Frankfurt listing but no decision has been made yet on whether

or not to proceed.

Summary

It has been a busy year at ALDA with the completion of three new private placements, “re-branding” of

the T36® Personal Disinfectant, fast-tracking a DIN for a new antiseptic hand cleanser, seeing new

supporters coming into the market leading to a substantial increase in the liquidity of the Company’s

shares, allowance of patents in Australia, China and the US, preparation of new and expanded patents,

preparation of regulatory plans, initiation of product testing and investigating new listings for the

company’s shares. As we approach the new year of 2008, the initiatives described above are expected to

generate new interest in the company both in Canada and abroad.

I also offer my thanks and gratitude to our dedicated employees, directors and shareholders who have all

helped with the growth and development of ALDA into a product-based company with great potential.

Sincerely yours,

Terrance G. Owen, Ph.D., M.B.A.

President & CEO

The content and information on this report is for informational purposes only and is intended for use by persons resident in

jurisdictions where such use is permitted by law (including applicable securities laws). and is not, and under no

circumstances is to be construed as, a prospectus or a public offering or advertisement of securities of ALDA. The

statements contained in this report that are not purely historical are forward-looking statements. “Forward looking

statements” include statements regarding our expectations, hopes, intentions or strategies regarding the future. Forward

looking statements include: statements regarding future products or products or product development; statements regarding

future selling, general and administrative costs and research and development spending; and our product development

strategy; statements regarding future capital expenditures and financing requirements; and similar forward looking

statements. It is important to note that such forward looking statements involve known and unknown risks, uncertainties and

other factors (including by not limited to lack of additional financing; risks associated with clinical trials and regulatory

approvals; loss of, or challenges to, our intellectual property; changes in management; competition; changes in markets in

which we operate) that may cause our actual results to be materially different from any future results, performance or

achievements expressed or implied by such statements. These statements and information are only predictions and actual

events or results may differ materially. Forward-looking statements are based on our current expectations and ALDA does

not assume any obligation to update such information to reflect later events or developments, except as may be required