There goes PLI last financial risk.Ha! 30M$ hey? Right where we tought it would be... :-)
Well, anyone who knows how to read NR will have divided 30M$ by 11,793,380 and figure out the real price is 2.5438$ but I'm totally ok with that considering the recent Bio-slump we're still in. We longs just have been deprived of ~3% of our value in exchange for 100% certainty of PPPS success. I call that a deal I'm extremely happy to sign! :-)
That buys ProMetic three extremely valuable privileges:
- Liberty of concern from the perception of having a cash position that's considered to low. That tends to render Mr Market nervous with any Corp that hasn't reach profitability, and put downward pressure on the SP. PLI'll never face this anymore. It now has enough cash to cross the development chasm and reach the Pg revenue shore and internal financial independance from the markets.
- Liberty from general volatile market condition. The market can now goes as wild as you want, since PLI don't have to refinance anymore to reach profitability, it will affect its SP but not it's economic viability. The storm can come as big as you want: you're garanteed to reach the shore... just take a pill and try to look elsewhere while the wouldbe storm passes.
- Infinite leverage in negociation of its business deals with potential partners. I can't state enough how much that one is important. The time when any potential parner could think of bargaining ProMetic because he perceived it in need of cash is forever over. No doubt anymore: it's full market value or nothing. And I'm thinking about both pharma partners AND Nasdaq introduction here. The only appropriate time for a walk on Wall Street is when you don't need of money.
(Oh, and obviously, by 2022, neither the 11.8 x 4,70M$ = 55.46M$, nor the debt repayment of the same amount (with interest compounding at 8% over 6 years) will make the slightest scratch on PLI's multi billions budget. I recognize Fred talent at writing N.R, though... :-D)
Anyway, I can't be more pleased with it. It sets the table for the rest of the year to come. Deals with upfront included. And no I don't expect those in H1. We'll see...
Actually they could now come as late as they can, the later the better. It's over now, we're done financially. It will just happen. And reward the patient , still stockholder, no matter what.
Enjoy that great day!
:-)
FD