RE: UBC take on last week's dealGood deal for several reasons:
UBC got just over $3m in cash and 1,206,500 shares. When the deal was struck ENW shares were selling for around $1.90...today they are $2.40 so the university has already made over $600,000 on its investment. This will be put to good use, I am sure, perhaps spawning another successful company.
Getting rid of the royalty and financial obligations is huge for Enwave. If this company is as successful as I hope, royalty payments could have been enormous, instead they will go into building the company In addition, I believe this company will be a takeover target in future. It will be more attractive to a buyer if it is free of royalty payments to a third party.
IMO great deal for both sides...congrats to university officials and Enwave management.