RE:RE:RE:RE:RE:RE:Revenues"We only know that the plant in Europe (Germany?) did not go ahead else it would have been completed by now."
CZO had ideally wanted a 40 million dose per year plant with a $100 million NPV. It wanted to list on NASDAQ and do a financing at one point. In Feb. 2021 the biotech market began the worst bear market in history. There were also COVID delays and ongoing shutdowns and uncertainties. CZO's work at McMaster and the University of Alberta was delayed.
Feb 10, 2021 · Politics Germany Germany extends pandemic shutdown into March 02/10/2021 Leaders of Germany's 16 states and the federal government have agreed to extend shutdown measures...
Not a great time for a small company to commit to a major capital project given the costs and risks of a shutdown to budgets, etc. There's also been the inflation spike and supply chain uncertanties. Then Europe entered the biggest war in 70 years. Germany was dependent on Russian energy and was hit hard.
CZO has committed to undertaking an intermediate scale-up closer to home to limit risks. It can do this with existing cash and doesn't need to raise money from the market. Last year 25% of US biotech was trading below cash making raising money very expensive. The work at the University of Alberta has also been completed now providing confidence. With supply chains and COVID normalizing and inflation coming down hopefully planning is more straight forward.