Securities Law & Instruments

 

March 5, 2003


BY FAX AND EMAIL

Ontario Securities Commission
20 Queen Street West
P.O. Box 55, Suite 1903
Toronto, Ontario
M5H 3S8


Attention: John Stevenson, Secretary

Dear Sirs/Mesdames:

Re: Dimethaid Research Inc. ("Dimethaid")
Proposed Rights Offering (the "Offering")
Amended Notice of Request for Hearing and Review Under Section 8 of the Securities Act (Ontario)

          We are counsel to Dimethaid. On behalf of Dimethaid we hereby request a review of the Director's decision dated February 20, 2003 pursuant to section 8 of the Securities Act (Ontario).

          The Director objected to the Offering on the basis that the annual financial statements of Dimethaid for the year ended May 31, 2002 are not in accordance with Canadian GAAP.

Dimethaid disagrees with the decision and the conclusions that:
(1) Dimethaid's acquisition of Oxo Chemie AG (the "Oxo Acquisition") should be treated as equity not as a liability; and
(2) the consideration owing for the Oxo Acquisition should be discounted to net present value.


          Dimethaid believes that it correctly accounted for the Oxo Acquisition and should be allowed to proceed with the Offering as an exempt transaction under paragraph 35(1)14(i) and paragraph 72(1)(h)(i) of the Securities Act (Ontario). Accordingly, Dimethaid requests a review of the Director's decision to object to the Offering.

          We have learned that the date of March 7, 2003 has been set for the hearing of this review.

          If you have any questions or require any further information, please do not hesitate to contact me at 416-865-7641.


 

Yours very truly,

"Jeremy P. Robinson"

Jeremy P. Robinson


JPR/DB

cc: Kathryn J. Daniels, Ontario Securities Commission
Rebecca Keeler, Dimethaid Research Inc.