Claritas Pharmaceuticals Inc V.CLAS.H

RE:Salzman Arrangement

[Moonshiner592]

Looking4Doubles wrote: I think some may be over thinking this - For me, it's not a big deal.  Only a step that had to be completed in order to clearly understand the amount of money they need from the licensing deal.  (ie Anyone giving money will negotiate hard for more market revenue for every dollar they give, so Kalytera has to clearly know what they really need.

If I was negotiatiing it, . .

1.) This is a step I would complete for clarity of my financial NEED.
2.) I would pursue 150-200% of the money I needed (To MAKE SURE the company has the money it needs - to redo testing, pay future legal fees for a potential takeover bid after phase 3, etc..)
3.) I wouldn't announce "anything" until I had the dominos lined up for the licensing deal. (Makes no sense otherwise, as you would be just giving more leverage to those you are negotiating against.
4.) I would also already have an agreement on the "conversion rate" between dollars and % of market revenue before I ever would talk to Salzman (Because this information would make that negotion a LOT easier.)

Bottom line: THIS step makes no sense, unless a deal is IMMINENT !  Remember when they postponed expenditure from Dec to March? ?  This is just putting that March 15 issue to rest "prior" to March 15th !  and why they waited for the patent news.  (ie  Why go down this path unless they know the markets are locked up & yes I know they are still pursuing another EU patent, but does anyone think that would be "harder" than the U.S. one?  Answer:  NO)

As for the 5 cent term, etc. .   That just tells me that "positive" news is coming QUICKLY !  (Either the licensing partner has already agreed to BUY these shares (as part of the deal),  . . OR an announcement is coming before this step happens - to make sure any sales are happening when there is HIGH DEMAND & HIGHER prices for them.)  Isn't this what Salzman would want IF they were getting locked into SELLING them in 5 days?  Who would want to announce AND be locked into a big quantity sale over 5 days without positive news ?  Answer:  No one !

At least these are the logical steps I used to take when I negotiated big deals - You line up the major steps, figure out which ones are most critical to the discussions/deal and then start knocking them down in succession.   We are getting very very close !

PS  WORST case is their negotiator doesn't know what he/she is doing and this is a 1.5% dillution.  BIG DEAL !   The issue is now resolved & the deck is cleared for the bigger discussions/ink.  However,  I seriously doubt this is the case, when they "specifically" contracted for it. (ie Echelon)

Remember our history:

GREAT phase 2 results - multiple unsolicited inquiries - Echelon announcement - options to directors -mgmt lead placement to cover pending legal fees ,Echelon, etc.. -a Dec announcement on a TERM SHEET (S) - A date rescheduling which only happens if there IS a Term sheet (s) - a key U.S. patent - then the resolution of the salzman payment.  I believe a DEAL is coming !  The steps are clear

Keep the bottles on ice !   I AM !   IF the shorts want to sell on Monday, "I" will "LAUGH", . . & then BUY them at low prices.  (This will be the FINAL & BIGGEST mistake by shorts)

Excellent post Doubles!.... I've got my bottles on ice as well ... Cheers!