looking aheadSniper... as usual I enjoy your objectivity, I think you have provided rare and necessary balance on this forum in the last few weeks specifically, I have agreed with almost everything you've said. I frankly think others, including Ruttan, despite great contributions, have been FAR too easy on management. I still think they're grossly lacking in accountability for what they say vs. what they deliver.
The last month and change of relentless selling by Dundee have been really tough to watch. I have been particularly disappointed by the lack of support in the marketplace but I suspect shopping a financing has something to do with the whole picture. Given Pierre's suggestions on the CC, I suspect a financing is close to being announced if not done. Especially based on our current price and how we got here.
Having said all that, I think we are just coming thru the back side equivalent of a perfect storm... we've been victims of poor management judgement and communication, fuelling lack of investor confidence, on top of the uncertainty of the Tunisia and Hemosol situations and the resulting cash squeeze. Throw in agressive US Hedge Fund trading and here we are.
The biggest problem with our Hemosol JV is the fact that it is with Hemosol ! We arguably have an industry revolutionizing technology but we're implementing it with an undercapitalized partner. To be fair, part of that is a result of the dominance of the huge players boxing us out. The whole thing kinda goes round in circles...
The last 2 months of agony waiting to hear what the heck was taking Hemosol so long is a testament to how tough they've had to fight to get any deal done. They have an extremely bitter shareholder base after the Hemolink debacle.
While I am somewhat disappointed in the last minute change in the makeup of the PLI milestone payment, I really am not overly uptight about it and I think it will work out. In for a penny , in for a pound. Yes we need cash but if this thing works, which we're virtually positive it does. Then Hemosol is not only going to be worth alot of money, it will be a showpiece for the technology for the industry and the world. The fact is, the $3mm pales when compared to what this deal means to Prometic if the whole thing gets swinging.... this is a deal they simply had to do.
To me, the question becomes.... how far is this money going to take Hemosol in terms of getting the process approved and getting products to market. I also wonder if there isnt more at play here in terms of deals with potential customers or related supply agreements. It makes sense to me, with proof of concept, that Hemosol would be looking for a well capitalized strategic partner. The technology and their plant is scaleable to create an extremely lucrative business. It wouldnt surprise me at all to see some kind of announcement in that regard.... the stakes are simply too high and the business and players are simply that big.
If you consider that this "pillar" of PLI's future is now considerably more secure. REMEMBER... whats almost lost in all of this emotion is the fact that .. THE SCALE-UP WAS SUCCESSFUL !!.... that is a huge deal. Then you step back and look at the next six months, even with some dilution.... I feel we are much better off than we were yesterday.
good luck to all