Ann: Phosphagenics Market Update - Potential Return of Capital, page-47

Kens
IMO
The cash back is all to do with raising cash. No one would give these guys $ to fund existing business or lack of. They have no track record IMO. It has taken far to long and been far too expensive to mop up the tat that exists .
At the minute they know they can't raise as they have nothing other than outgoings This Cash back is bait . We don't know if it is plastic or real as no one knows what % each part of the cumulative 300 mill imaginary ambit claim can be achieved. Lose out on fists part and max achievable drops to a very small % as a pest payment to get rid of POH. Thats the way this arbitration works IMO.

Bluntly the Jap T deal is as soft and as hollow as they come with more exists than a A380. Realisticallyt should it come to anything there is years of development . Phase 123 and them marketing etc etc before product on shelf and in the meantime staggered payments in teh next year that we don't know if they are evenly distributed, value or the hurdles. Hurdle 1 might be to prove it really can do something etc etc. We may fail at first hurdle .

Arbitration is a punt but no one sensible bets on lawyers ( well look at slater and gordon) and independent arbitration when in reality we are guessing over the exact part of the claim that results in $. My thoughts is that it is a contractual arguement not how good a product or work product or patent is but the use of commercial knowledge and once used contract is locked in. Other side probably say the work product came to nothing so nothing due? We will never know the real detail .

Bottom line is no one would invest without such a statement as with existing management and unknown what direction they will take and with so little evidence of their products and skills you wouldn't know what direction they would take so although they may have cash they may more straight to another technology if they see better promise near term etc etc. Yes it is a cut throat world out there and a nothing will surprise me with This crew or this technology .

Question is will they raise before decision - I guess yes. More confetti . Beware convertible vulture finance if someone doesn't take the bait on the arbitration bet.

If not and they lose they are all unemployed IMo.