Frankyboy,

The numbers you are questioning refer to two different things.

Paul did state in the letter to shareholders that the plant was set up to produce 10,000 kilos a month. At an average assumed price of $150 per kilo (Paul's number) it should easily generate $15M in revenue. This number must account for down time, or some vacation time, or a discounted price on quantity, because at 12 months production the revenue could potentially represent $18M in revenue.

The other number you refer to is related to the agreement signed with AHD International, and announced in the 8-K filing. The potential value of that agreement, provided all minimums are met as specified in the agreement to maintain exclusivity, is somewhere in the $60-$80 million range, depending on the negotiated price per kilo. My estimate, based on a discounted price per kilo, is around $68M. Obviously, the minimums were considered by AHD to be fully attainable, and they expect to generate sales that will exceed those minimums. The degree to which they are able to do so remains an unknown.

If AHD ramps up sales to meet or exceed the minimums, Bioagra will have to increase production capacity by adding additional equipment and production lines. This was fully anticipated when the plant was laid out, and the piping at the plant was designed for additional production lines as soon as sales exceed current production capacity.

Best regards,

zties