Paladin - Bioniche partnership Well well. Looks like we have a new partner in Paladin. A few things that bug me are the 13.25%, and that RCP still has their greedy little mitts in for 2% of sales. 2.5mm warrants (confused about the exercise price - between .50 and a $1??) So either 1.25mm or 2.5m cash coming back to us. I can live with the dilution.
The good part is RCP is gone. Their 5mm investment requirement, the 5mm minimum cash reserves (now a more managable 2.5mm) and 10%revenue growth parameters are all gone. That is what really could have neutered us. It also is another pretty serious player that wants a part of Urocidin and feels confident an Animal Health deal is around the corner. So essentially we got 30mm loan for Canada, Mexico and South Africa partnerships.
I'm sure that they could have had at least one Urocidin deal with someone, before they did this deal. Maybe they are waiting for the late June HC meeting for some more ammo with potential partners. Provided they are confident HC -CC is around the corner, that would be a good play and boost offers substantially with an HC stamp on the resume.
I think the thing that paralyzed the market was the possibilty that RCP was going to sell off the company, once we missed one or more of the conditions in the previous RCP loan agreement. I think now that concern is gone. We can get on with proxy battles, new CEO's, sale of AH and partnerships for Urocidin. I think the market should like that it is not a share offering for 24mm shares at .30 :-) We shall see. GL
beech