Some deductions from this 1. If this move is for the cash, that means they cannot find any partner interested or believe enough in Urocidin to put up any upfront money.
2. Didn't GW originally offer something similar, i.e. put up cash for some equity? The only difference is they also wanted a change of the BOD. So this is a move to entrench themselves.
3. A fragrant breach of promise of no dilution. McRae and the BOD cannot be trusted anymore.
4. They could have done this to satisfy the condition set by the RCP loan. If they had done that then, we could have at least not have to pay the extra interest and NOT give away the Canada abd Africa rights to Urocidin. That clearly demonstrate the incompetance of the BOD and McRae.
5. This is a no-brainer for any big pharmaceutical company. For $5-7M, they can have total control of Urocidin if they are interestedand never have to invest in any trial and approval process. They can buy the shares, then let BNC tey to do all that with BNC own money. If BNC succeed, they get a 25% shares of the profits. If BNC run out of money, by then without AH revenue, BNC will essentially go bankcrupt. They can either buy up the valueless shares or buy BNC out at bankrupcy rate and own Urocidin themselves.
McRae just gave the company and Urocidin away.