I'm going from memory, but on a recent CC or WSR i
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Posted On: 04/08/2020 3:39:20 PM
Re: DuckDiggler #26336
I'm going from memory, but on a recent CC or WSR interview this was a question posed....and NP discussed uplist requirements during another call a month or so prior to this one also.
During the older call NP stated they were familiar with both the NASDAQ and NYSE uplist requirements and had been in discussions with NYSE (NP named the person).
On the more recent call NP clarified that NYSE required 18 months of estimated operational cost and future revenue could not be used in the calculation. NASDAQ only required 12 months of estimated operational expenses and was unclear to me whether any future revenue would be included. In the end, NP said or sounded like they would pursue NASDAQ to uplist.
The BLA will not directly help meet either of these requirements, but I can think of two ways it could indirectly. 1) They are capitalize commercial grade inventory before approval if it is reasonably likely to be approved.....the BLA filing and accepted by the FDA would allow for this based on my research. This would provide an asset on their balance sheet that would improve shareholder equity requirements (likely not get them completely out of equity deficit, much less meet the minimum equity required to uplist (varies depending on the NASDAQ market they pursue)). 2) They could use this inventory as collateral or potential financing. If debt financing, it would counter the equity requirement, but would help meet the projected xx months of operational expense requirement.
I'm sure others could provide more clarity as I'm just going from memory and previous research of pre-launch inventory capitalization requirements. While I can't wait for CYDY to uplist, if they continue to advance the things they are currently working towards, it will happen eventually so I quit focusing on it. I'm looking forward to the BLA being filed, COVID-19 progress (for both the patients and economy), cancer progress, license deals, and all the other indications in the pipeline. Uplisting is a reward for checking off one or some of these boxes.
During the older call NP stated they were familiar with both the NASDAQ and NYSE uplist requirements and had been in discussions with NYSE (NP named the person).
On the more recent call NP clarified that NYSE required 18 months of estimated operational cost and future revenue could not be used in the calculation. NASDAQ only required 12 months of estimated operational expenses and was unclear to me whether any future revenue would be included. In the end, NP said or sounded like they would pursue NASDAQ to uplist.
The BLA will not directly help meet either of these requirements, but I can think of two ways it could indirectly. 1) They are capitalize commercial grade inventory before approval if it is reasonably likely to be approved.....the BLA filing and accepted by the FDA would allow for this based on my research. This would provide an asset on their balance sheet that would improve shareholder equity requirements (likely not get them completely out of equity deficit, much less meet the minimum equity required to uplist (varies depending on the NASDAQ market they pursue)). 2) They could use this inventory as collateral or potential financing. If debt financing, it would counter the equity requirement, but would help meet the projected xx months of operational expense requirement.
I'm sure others could provide more clarity as I'm just going from memory and previous research of pre-launch inventory capitalization requirements. While I can't wait for CYDY to uplist, if they continue to advance the things they are currently working towards, it will happen eventually so I quit focusing on it. I'm looking forward to the BLA being filed, COVID-19 progress (for both the patients and economy), cancer progress, license deals, and all the other indications in the pipeline. Uplisting is a reward for checking off one or some of these boxes.
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