gradalis playing hardball or business as usual, page-30

"Gradalis can lodge all the patent applications they like, it won't prevent them having to pay BLT their dues eventually if indeed they have used BLT's tech to simply create a slightly different version."

I think the key issue here is not about Gradalis directly but rather how does BLT get the money it needs to continue to exist. If BLT is not around, Gradalis may eventually have to pay up but it won't be BLT shareholders that get the benefit.

At current burn rates we will be out of money by this time next year unless we get another injection of funding. The June Quarterly Report shows no income from either of the two deals that we have done with Calimmune and Genable. Gradalis was one possible source of funding and so concern over its position has taken on more significance than it might otherwise have done.

Can anyone see any other source of money right now?

It would appear that we have no option but to sell a share in one of our programs in the next few months or get venture capital or ask shareholders to dip into their pockets again.

I cannot see the necessary $ being raised by existing shareholders so it will probably one or both of the other two approaches and if so, what terms would the VC dictate?

One possible alternative would be to get a VC to advance sufficient funds for BLT to make an offer to takeover Gradalis. That would provide the necessary funds to continue while adding value for existing shareholders. I cannot see any other takeover target that would make sense at this point in time. As Gradalis is a private company doing a takeover would not be easy.

As I said before, this issue is not clear cut. I see the way this matter is dealt with as having the potential of being a catalyst for determining the future direction of BLT.