GCC Lab Closure I continue to speculate about what really happened with the GCC Lab closure. I'm starting to suspect Diagnocure management knew about the problem much earlier ... maybe in May. If you were running Signal and decided to throw in the towel on the GCC venture, would you quietly close the Lab and say nothing to Diagnocure? Signal had paid $5million to Diagnocure for the Lab on year earlier. If I were running Signal, I would try to sell the Lab and license for GCC to someone else. It the Lab is closed, the certifications gathered from 50 states over 3 years would be extinguished. They cost a lot of money (operating costs) to get. I would first try to sell it. If I were in a hurry, I would contact Diagnocure and offer to sell it back to them for a very good price ... $1million for example. But no, Signal just closed the Lab. Its a curious way to do it, unless a lot of key staff quit and Signal had no choice.
If I were running Diagnocure and I heard in May there were problems, I would ask my legal advisors what to do. Maybe they said you have to follow the contract. If Signal defaults according to the contract then you take the next step specified in the contract. So Diagnocure had to wait until the end of July, at which point there was no payment. A day later Diagnocure could have sent the default notice letter. Then 90 days later plus one day, Diagnocure could reclaim their intellectual property and start trying to sell it to someone else. The earliest that could happen was October 31, which was today.
We may be getting an annoucement from Diagnocure any day now. The alternative scenario is it was all a surprise to Diagnocure management. I really don't believe they are out of touch with their customers and relationships like that.