(Total Views: 179)
Posted On: 10/08/2018 5:06:55 PM
Post# of 72446
And CTIX was what? 25x when we were $4.00? 40x? I would need to look back and see how much cash we had at the time.
I'm choosing 3x as a baseline. Whether it is 3x or 30x does not change the parameters of this investment. Both $13 and $130 make us a gigantic return from here. The risk is the same in either case - we either get the funding to proceed or we don't.
You can pick whatever fanciful multiple you want to go along with that fanciful upfront. If you get $700M (complete financial security and independence for a decade) the multiple doesn't matter...you'd be very happy with even 1x on cash (that's a 20-bagger) from here. If we end up with $30M upfront then the multiple will matter.
I'm choosing 3x as a baseline. Whether it is 3x or 30x does not change the parameters of this investment. Both $13 and $130 make us a gigantic return from here. The risk is the same in either case - we either get the funding to proceed or we don't.
You can pick whatever fanciful multiple you want to go along with that fanciful upfront. If you get $700M (complete financial security and independence for a decade) the multiple doesn't matter...you'd be very happy with even 1x on cash (that's a 20-bagger) from here. If we end up with $30M upfront then the multiple will matter.
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