Sounds like you are BFF's, do you have sleepovers? You certainly act like an IR of the Company. Although a reputable IR would not disseminate rumors or potential events on here.
This $100 million dollar deal was brought up by you months ago, maybe 6 months ago. Once the general terms of an agreement are approved by both parties, the legal paperwork and nuances obviously take a little time to iron out. But multi-billion dollar deals have been finalized quicker than this carrot the Company, and you, dangle to shareholders.
Is a licensing agreement dependant on regulatory approvals? If that is the case, and the Company needs this as a PR stunt to try to garner stock support, why not make the agreement contingent on approvals? In actuality, if a license agreement is viable, the Company is jumping the shark putting out figures like $100 million over 5 years and simply state that the Company is pursuing licensing opportunities. The Company does not appear to have ever met exaggerated sales or potential sales figures, or any major positive events it has bragged about including dollar amounts in past or present lawsuits.
One would hope that the Company negotiates a large upfront payment for the licensing agreement. A jaded mind could assume the Company would get $1.00 the first 4 years and $99 million the 5th yr the way past boasts have played out.
I suppose the $100 mil figure is possible but very unlikely. If the Company received a 10% royalty (which is doubtful), sales of the product would have to be $1 billion dollars over 5 years. Seems like a stretch. The products most likely would be sold in retail stores which typically work on 30% so 10% royalty seems high when factoring in manufacturing.
It is possible that a company that already has a high number of customers purchasing through their pharmacy with insurance coverage could yield high sales numbers if they upgrade legacy customers from their current brand to this new and improved product you brag about.
Interesting to see why a major company would allow an undercapitalized penny stock company to produce a product it stakes its reputation on a new China facility. If that is the case.
I won't be around to see it though, if the appeal is won and the stock PPS gets a significant uptick I will be off as fast as a prom dress.
This $100 million dollar deal was brought up by you months ago, maybe 6 months ago. Once the general terms of an agreement are approved by both parties, the legal paperwork and nuances obviously take a little time to iron out. But multi-billion dollar deals have been finalized quicker than this carrot the Company, and you, dangle to shareholders.
Is a licensing agreement dependant on regulatory approvals? If that is the case, and the Company needs this as a PR stunt to try to garner stock support, why not make the agreement contingent on approvals? In actuality, if a license agreement is viable, the Company is jumping the shark putting out figures like $100 million over 5 years and simply state that the Company is pursuing licensing opportunities. The Company does not appear to have ever met exaggerated sales or potential sales figures, or any major positive events it has bragged about including dollar amounts in past or present lawsuits.
One would hope that the Company negotiates a large upfront payment for the licensing agreement. A jaded mind could assume the Company would get $1.00 the first 4 years and $99 million the 5th yr the way past boasts have played out.
I suppose the $100 mil figure is possible but very unlikely. If the Company received a 10% royalty (which is doubtful), sales of the product would have to be $1 billion dollars over 5 years. Seems like a stretch. The products most likely would be sold in retail stores which typically work on 30% so 10% royalty seems high when factoring in manufacturing.
It is possible that a company that already has a high number of customers purchasing through their pharmacy with insurance coverage could yield high sales numbers if they upgrade legacy customers from their current brand to this new and improved product you brag about.
Interesting to see why a major company would allow an undercapitalized penny stock company to produce a product it stakes its reputation on a new China facility. If that is the case.
I won't be around to see it though, if the appeal is won and the stock PPS gets a significant uptick I will be off as fast as a prom dress.
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