My phone call with Andrew Whelan (12/09/2009)

Just thought I will put this out here if it helps anyone. BIEL is going through a rough patch for no reason. Lot of us (including me) are losing a lot of money as of now. We all invested in the company because we truly and honestly believe in the company and its products. I am publishing this for only those who care. Bashers and doubters can go to hell. I am not a paid PR person, so I couldn’t care less about what you have to say. I took the initiative to call Andrew when I was in doubt and I am just sharing this with you all. Also, I added 166k more shares at .05.

I sent Andrew an email first with some questions in it which I had collected from lot of us on Yahoo boards and chatroll. He replied to my email with a canned reply first, but when I asked him again to reply to my questions, he sent me his phone# and asked me to call him. I kept trying to call him for 15 minutes but the phone was engaged. Finally, I got through but the receptionist picked it up and told me the Mr. Whelan was on another call and it maybe a while before he is free. I left my cell# with the receptionist (not expecting her to deliver my message at all). But I was pleasantly surprised when Mr. Whelan called me himself on my cellphone.  I had a long conversation with him but I am just putting here questions that I specifically had him answer for all of us :

• Do we still have to wait into next year, or is reclassification of PEMF expected in December?

A: I have worked with this company for 10 years now. We had tried to re-classify PEFM technology under class-2, two years back, but FDA just turned a blind eye to our application and never even acknowledged it. This time we have lot of positive response from FDA and they are working with us and asking for documentation and supporting evidence as they review our application. This is very positive news and we are working very hard to make sure that FDA gets everything they ask for. As far as the dates are concerned, it won’t be fair for me or anyone else to announce a date. We all know how these govt agencies work. FDA takes 1 week to type up a letter. And at this time of the year, people may be going on vacation. December is always a slow month.

We already have class-3 approval for our products from FDA.  Here is the debate about moving it to class-2. For class-2 these are the two important questions that are asked :

• 1. Can the patient diagnose himself or does a Doctor need to diagnose the disease for him?

No one needs a doctor to tell them that they have back pain or muscle pain. You can pretty much figure it out yourself where you have the pain. This is not lung cancer or something like that where you need to go to a doctor so that he can run a battery of tests to give you the verdict.

• 2. Can the patient consume a medicine on his own or does he need medical supervision to control the amount ingested into the body?

Actipatch and Allay are not going to be ingested into your bloodstream. These are simple devices with an on/off switch. When you don’t need the therapy turn it off.

As you can see the arguments are very simple and the answers more than obvious.

• Analyst Carrie Snyder predicted 0,30 to 0,50 by end of the year. Right now things seem to be a disaster. Would you care to comment?

A: Carrie Snyder’s valuation still holds absolutely correct. This stock is easily valued at .50c on FDA approval.

• SmallCap Network is constantly damaging your stock by giving very negative technical comments about it,and everytime they do it, the stock drops violently.To add to this TheStreet.com is further fueling the fire by release negative articles every now and then. Are you planning to do anything about this?
  

A: Frankly speaking, I have no control and don’t even care about what X person on an XYZ.com thinks about BIEL. They have their right to an opinion and I cannot control that. All I can control is that I will take this company where I want it to be. I am going to take care of our shareholders and we are working hard to do everything to get re-classification and to get international sales going in a big way.

• How quickly are you going to resolve the Scottrade and Ameritrade issues? This is really hurting all of us by creating an imbalance between buyers and sellers?

A: Unfortunately, we have no control over Scottrade and Ameritrade. They are complaining about a delay from DTCC (Distribution and clearing house) for our shares and that is why they have put restrictions on several other penny stocks too to protect their own interests. Being a pinksheet stock comes with all these problems. All that we have control over is that we are making lot of efforts to move to another exchange. The soon to be announced audit results will be a part of this equation to help us move to another stock exchange. This will help remove the pinksheet lable of our company and will automatically fix all the problems with these brokers.

• The sudden drop in stock price definitely begs some explanation. Please comment.

A: I have been with this company for a long time. My focus in life is clear. I want to take this company somewhere and that will happen with FDA OTC clearances and when revenue starts pouring in after the DRTV ad campaign goes live. A few cents drop in the PPS doesn’t bother me at all. This is not a daytraders stock. This is a stock which you buy and hold. The pain market is a billion dollar market. Once our products start selling in all the countries, revenues will hit the roof. And in the first quarter next year, when we will have sales/revenue numbers to report, things will speak for themselves.

• There is lot of talk that a Reverse Split is impending. Please comment. Also, the company has diluted the shares to the max. When is this going to stop?

A: Most pinksheet and pennystocks go through reverse split. This becomes essential at some point. But I can assure you that there is no talks of Reverse Split right now. We will get the company in a good shape with real revenue/sales numbers before there is even a talk about reverse split.  As far as dilution is concerned. Yes, we have tapped into the stocks whenever we need funding. But there is a reason why we are going big time into sales promotion now. Sales means revenues. And that means no need for further dilution.

• If the company doesn’t get the re-classification, can it still go ahead and do the infomercials ?

A: If you notice we are starting the DRTV campaign in lot of countries. (He mentioned several countries. I don’t remember all. Germany, Turkey, Canada, South America were amongst them). We don’t have to wait on FDA for all these countries. We can sell our product without any problems. The most exciting thing that shareholders should look for is the DRTV ad campaigns. Once these start airing (starting Dec 10 I think – Jan 16th in all these countries), revenues will start pouring in.

• When is the Audit going to be completed? Is OTC BB on the cards?

A: The audit is almost complete. I will get the Audit results out in 1 or 2 weeks at the max. There was no problem with the Audit. It was very smooth. The audit was done 2006, 2007, 2008. These results should put us in good shape and help create transparency for shareholders.

• There are people claiming to have Insider info about the company. These people claim to know things about the company and PRs about to be released before the news even comes out. This is very scary for the rest of us honest shareholders. How is insider info leaking out ?

A: This is the first time anyone has brought this to my attention. We don’t reveal any strategies, decisions to any one. Because this is illegal. Obviously, I don’t want SEC knocking on my door. Please call me directly whenever you spot an incident of someone claiming to have insider info.  Also, I heard some people claiming that the company is being bought out. These are very irresponsible statements. I will never put any information like that out there, unless I have a written and signed contract in front of me.

• Does Joe not work for the company anymore? His absence has become noticeably conspicuous now. Lot of people think that he has done more damage to the company than good, since he is busy promoting his other stocks all over the BIEL board.

A: Yes, Joe still works for the company. He is not an employee and is a contractor hired for PR purposes. His job is to get information out to the shareholders. And he does a great job with it.

(This is my own answer to this question. Frankly speaking, you will not find EVEN A SINGLE POST by Joe ever cross-promoting any other stock on the yahoo boards. I have gone through all his posts and I think this question was completely unfounded and unfair on Joe)

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