64, thanks for the clarification. I'd just like to expand on the US3 million option fee, if I may.
As you correctly said, it has nothing to do with, and is completely independent of, the blood collection device agreement.
Medpro paid US$3 million for an option to negotiate an Exclusive License Agreement by September 1, for the marketing and sale of the Unitract 1ml Syringe, and the bigger Safety Syringe Range of products in the US.
IF at Sept 1, no license agreement has been signed, Unilife MAY ADVISE Medpro that it does not wish to proceed with a license agreement and return the US$3 million + 7% interest. This is a UNILATERAL TERMINATION at Unilife's option.
IF Unilife DOES NOT terminate, a Minimum License Agreement WILL BECOME ACTIVE on the following terms:
Exclusive 5 year term commencing on commercial relaese of each product
Mimimum sales OBLIGATIONS of 85 million units aggregate in first 3 years, royalty paid per unit,
Exculsive right to market ALL Unilife products in the US under the Premium Unitract brand.
The US$3 million isn't going anywhere. Medpro paid US$3 million for the right to negotiate a deal within a specified time frame. It is only refundable at Unilife's option.
Irrespective of the blood collection device business, an exclusive license agreement with Medpro for the Unitract range of products in the US will be signed by September 1. If is is not, (and there are 3 million very good reasons why it is in Medpro's best interest to ensure it is signed,) and Unilife does not terminate, a MINIMUM LICENSE AGREEMENT will automatically come into effect.
Win-win for Unilife, and not the sort of agreement a CEO out of his depth would be able to negotiate. That's not a dig at you, Harsam, just further evidence that AS is on his game, and also that Unilife holds the trump hand.
IMHO
UNI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
