The big difference will be how much 19.9% of the company is worth.... Some on here are thinking it will be 19.9% of current market cap, why would Unilife do that deal?
When you allow other companies into your data room it is not to take a 20% interest at the current market price, it is to look at all the not released deals, assets, program, current contracts, status of capital expenditure (Production lines) forecast income and to see the real worth of the company.
There are some smart people on here (and I'm sorry some very damaged weekend keyboard company directors also) that would know quite well that a company can be quite cash poor on paper especially after large capital expenditure of production lines and yet forecast ramping income that shows the company is worth 10 or 20 times the market cap.
If Unilife was really worth its current market cap it wouldn't have taken more than 2 weeks to walk away laughing.....
On top of this I would imagine all of the current customers have also taken a peek inside the data room if for no other reason than to mitigate any risk to themselves…. Remembering that if for some reason Unilife was to fall over and not exist so would 3 years of work by the current customers…
Have any of them in the last 3 and a half months given any indication they were going to bail, No! Has Abivie announced some other contract with a competitor or given any indication they will not be continuing with Unilife?
So IMHO I think the current Unilife customers feel the company is viable and will suit their needs.
Also IMHO if we were to speculate just for arguments sake as it seems a lot these threads are for I would lend more credence to an upfront payment of 15M being a 10% deposit for 19.9% interest of the company than as Mr Tilson would have us believe it is 90% deposit for 19.9% of the company. I’m sure we will all know soon and some of you will be able to take off the aluminium foil hats and go back to the conspiracy theory sites and argue if the Americans really did land on the moon.
GLTA
UNS Price at posting:
16.5¢ Sentiment: Buy Disclosure: Held
