Knight Therapeutics Inc T.GUD

Interesting Situation ...

[drippingsnot]

Knight wants to grow Mexico.

Knight has also been funding Moksha8 in Mexico/Brazil since February 2019.
Moksha8 has been making progress with licensing deals since that time.
     - 1 deal in Mexico
     - 5 deals in Mexico/Brazil.
At yearend, Moksha8 had $12 million USD in outstanding loans with GUD at an interest rate of 15-17% ... that's some high risk lending I'd say.
Knight owns warrants equal to 5% of the fully diluted shares of Moksha8.

Knight has earmarked $100M USD at Knight's sole discretion for corporate development at Moksha8.

What happens here?  Does Moksha8 become a competitor, a partner or an acquisition for GUD?

[Snowballgrowth]

Good question !

[kentucky77]

Sounds like a good growth strategy... looks like a potential acquisition given the low rate of sales they have in Mexico.  17% interest is the writing on the wall. 

[drippingsnot]

That's what I'm thinking Kentucky ... at a 17% interest rate, Moksha8 is desperate. Keep in mind too - the owners of Moksha8 is an equity firm and they should have access to cash.  Doesn't seem to be the case, or they know the cash alone won't do it ... the business needs GUD's help. Moksha8 CEO Joel Barlan said: “We are thrilled with this partnership. Moksha8 is

[Snowballgrowth]

Did you see Knight's observers on the board ? I didn't https://www.moksha8.com/board-of-directors.html https://www.globenewswire.com/news-release/2019/02/18/1733742/0/en/Knight-Signs-GUD-Bueno-Latin-American-Strategic-Funding-Deal-with-Moksha8.html

[drippingsnot]

I'm not too sure what the term "observer" really means so I assumed it wasn't an official title - otherwise you'd think they would have been called them board members. Also it says we have "the right to" observers but we don't know the details of the agreement - could we get observers after a certain dollar amount is borrowed ? Googled a definition ... A

[Snowballgrowth]

  For more the priorities should be optimisation, BD and buyback. I would be very surprised if J. Goodman / Knight don't buy below book value. That said they now need  more products to add value in the sales team hands.