food for thought
Bottom line, I like this new strategy. A bunch of us have been harping for ages about the fact that there's significant underlying value in this company. Management, to date, has been unable to unlock the value. We may finally be going down that road
Think about the British division for a moment. It will own the PRDT / ARC / MacoPharma relationship and filter revenue stream.
The entire company's market cap right now is $60mm (give or take)
If the new division has to raise $15mm to get to cash flow positive, what percentage of the division (company) will it have to give up ? It all depends on what FUNDAMENTAL value is placed on the division itself.
ie: if consultants / management / Board of directors determine that a justifiable value for the British division is $50mm... then we may very well be able to effectively sell 30% of the DIVISION for $15mm..... THIS iS FAR LESS than what we would have to give up to raise $15mm via the Parent co.
The bottom line is this, by selling the FOCUSSED story, the company can get closer to deserved value out of each division. I also believe its easier to attract investors and JV partners that dont necessarilly want the baggage or associated risks of the other company platforms....
I do truly think this is a WIN WIN....
FRANKLY, this should have happened 2 years ago... but its absolutely better late than never.
I am willing to bet that we will shortly see significant JV / partner / Investor announcements in one or more of these divisions....