If you have been a business owner, you would know how difficult it would be to get a business loan if ownership of your primary asset was in dispute. Even if the lender thought that the litigant had a poor case, the lender would be able to demand repayment terms that seriously disadvantaged the borrower. We see this frequently, when desperate companies enter into death-spiral arrangements.
Noxopharm had eminent legal advice that its ownership of NOX66 would withstand legal challenge, but at what cost? Just as you have not been able to let go of this issue, it is entirely predictable that a group of lawyers would be able to stretch litigation over a number of years and during this period, Noxopharm might have had difficulty raising funds on reasonable terms.
Noxopharm has made a commercial decision, through gritted teeth no doubt, that giving away 4.9% now was preferable to prolonged litigation. Kazia has also made a commercial decision, in that it accepted 4.9% when it might have demanded a much higher percentage if it had an infallible case.
Meanwhile, the elephant in the room is the size of my profits resulting from the trust I placed in Graham Kelly at 7 cents, at 14 cents and at 20 cents.
NOX Price at posting:
$1.24 Sentiment: None Disclosure: Held
(20min delay)