The joint venture announcement is really great news. My biggest fear all along has been if GC did another "spinoff" deal like AVDX leaving the shareholders with nothing- he spoke about that possibility at a presentation he did a few months ago. Bottom line is AMBS needs cash and now. Best case scenario is for them to partner ESS and get a nice upfront payment which they could use to pay off Magna.
The fact they have entered into an exclusivity agreement says they are pretty far along in the negotiations. I always doubted Big pharma would partner on ESS until it has a completed and successful phase 2. In my conversation with Gregg Linn a few months ago about AVDX, he told me Roche told him to come back to them once FDA granted clearance to OvaDX- just too much risk for them until that occurs. So likewise with ESS, I think a large company just doesn't want to take on the risk at this stage.
The 8k describes the company as a "commercial -stage wound company:" I think it's probably a smaller company, possibly private. I owned TTNP a few years ago- it took them about a year to negotiate a partnership deal for their Probuphine. In March they were in "term sheet negotiations" and they didn't close the deal until Dec. AMBS aquired ESS last summer, so I wouldn't have expected them to have been able to close a deal before now. All that really matters is how much they can get up front and if it's enough to pay off Magna.
As a side note,that Hipparchus guy has been posting nonsense on Twitter for the past few months- "first patient being treated next week, financing deal done" etc, etc. none of it was ever true and then he'd remove the post the next day. This week he posted this- and it turned out to actually be true- unbelievable!
1. hipparchus @hipparchus70 3h3 hours ago
$ambs I told you 4 days before the deal !!! I am also hearing that the JV partner values ESS at $750 million. Let us see if $AMBS can go +$4
2. hipparchus @hipparchus70 Jun 27
Congrats all. Rumors were right. $ambs has clinched an eye-popping deal. Salute @G_Commish's leadership. PR on 30 June will make headlines.
3. hipparchus @hipparchus70 Jun 24
$ambs alert: "a deal is imminent" This was told to me by a common shareholder who is in @G_Commish's contacts and spoke w/ him yesterday.
The fact they have entered into an exclusivity agreement says they are pretty far along in the negotiations. I always doubted Big pharma would partner on ESS until it has a completed and successful phase 2. In my conversation with Gregg Linn a few months ago about AVDX, he told me Roche told him to come back to them once FDA granted clearance to OvaDX- just too much risk for them until that occurs. So likewise with ESS, I think a large company just doesn't want to take on the risk at this stage.
The 8k describes the company as a "commercial -stage wound company:" I think it's probably a smaller company, possibly private. I owned TTNP a few years ago- it took them about a year to negotiate a partnership deal for their Probuphine. In March they were in "term sheet negotiations" and they didn't close the deal until Dec. AMBS aquired ESS last summer, so I wouldn't have expected them to have been able to close a deal before now. All that really matters is how much they can get up front and if it's enough to pay off Magna.
As a side note,that Hipparchus guy has been posting nonsense on Twitter for the past few months- "first patient being treated next week, financing deal done" etc, etc. none of it was ever true and then he'd remove the post the next day. This week he posted this- and it turned out to actually be true- unbelievable!
1. hipparchus @hipparchus70 3h3 hours ago
$ambs I told you 4 days before the deal !!! I am also hearing that the JV partner values ESS at $750 million. Let us see if $AMBS can go +$4
2. hipparchus @hipparchus70 Jun 27
Congrats all. Rumors were right. $ambs has clinched an eye-popping deal. Salute @G_Commish's leadership. PR on 30 June will make headlines.
3. hipparchus @hipparchus70 Jun 24
$ambs alert: "a deal is imminent" This was told to me by a common shareholder who is in @G_Commish's contacts and spoke w/ him yesterday.
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