sounds like an r&d deal is close...., page-9

I agree. It does include some future potential.

The significance of the next signing is -

1. cash flow coverage so no weakness in negotiations
2. further validation of technology
3. R&D signature = broading awareness of M&G applications
4. takes the probability of more signatures MUCH higher
5. attracts new investors based on positive cashflow
6. provides resources for aceleration of marketing and development (anyone picking up the confidence that cashflow will come soon by the appointment of 3 new scientists?)
7. puts ADO in the potential position of acquiring a portfolio of tests and cures that they know will be accelerated or made viable with the use of M&G (ADO has the best knowledge of what M&G can be used for)


So we will never trade on a multiple of earnings based on cashflow from one signing. It will be a bit like MSB where the market cap is based prely on the increasing probability of massive cashflows - not just one set of cashflow.