RE: Just posted on BNC's ASX site... Thanks RG I am too stupid too understand this. On first glance I noticed two major redactions, one for planned use of funds and the entire section of revenue projections. The first one concerns me, the second one sounds like news that's in the can.
$200K sliced right off the top for fee. I'm in the wrong business.
Please correct me if I'm wrong. It would seem we are on the hook to pay interest plus 2% of all consolidated revenues (not just product sales) which would include 2% of milestone payments or portions thereof that have to be booked as revenue? I vaguely recall Brian saying something about having to amortize the revenue over several years but that this might change with the new accounting methods? Anyone?
The prepayment options I do not get fully. I see we pay an extra 6% if we prepay before March 2015, and an extra 3% if we prepay before March 2016 Looks like the only way we will prepay (which must be done in whole) is if the plant really starts cranking out the vaccines by the megamillions, we sell the human division, or we get a huge chunk in milestone payment. In any of these cases we will also be shelling out 2% of the consolidated revenues associated with the windfall.
What I can see is the apporximate minimum cost of this deal if we are in position to prepay in 2015
9.5 m - interest payments first 3 + years to June 2015
200K - loan fee
2.6 m - 2% of revenues based on 140 mill over three years +
0.6 m - 3% prepayment penalty
Total 12.9m (now I know why the rich get richer
Interesting tid bits on first glance:
Bioniche must increase revenue by 3 mill a year
Bioniche Urology Inc is a subsidary created wholely for intellectual property re MCC
Looking forward to hearing from others.