One Bio (PINK:ONBI)

One Bio strategy:

As discussed elsewhere in this document, the Company has implemented a two pronged strategy, which is:

• to encourage and support organic expansion within the enterprises it acquires and utilize synergies and economies of scale between the entities; and 
•  to identify and acquire accretive acquisition targets.

 
To be successful, each strategy requires adequate funding from available liquidity resources.  Accordingly, ONE has determined that its organic expansion strategy is first supported through organically generated cash flow and supplemented by available borrowing capacity depending on the requirements of the anticipated expansion project. Any liquidity organically generated in excess of reinvestment needs will be channeled to the accretive acquisition strategy or retained for future expansion projects.
 
The Company had working capital of $9,508,982 as of June 30, 2010.  Our operating and capital requirements in connection with supporting our expanding operations and introducing new products have been and will continue to be significant to us. Although we are profitable, and have been profitable, for the six months ended June 30, 2010 and 2009, our growth strategy, which is initially focused on accretive acquisitions and organically expanding our product lines will require substantial capital which we may not be able to satisfy solely through our operations.

 
Based on our current plans for the next 12 months, we anticipate that additional revenues earned from our expanded product line and broadened distribution channels will be the primary organic source of funds for future operating activities in 2010. However, to fund continued expansion of our product lines and extend our reach to broader markets, including international markets, and to acquire additional entities, we may rely on bank borrowing, if available as well as capital raises.