"Does it imply an on going royalty??"
I read into this that BLG may enter into a manufacturing contract (as apposed to development contract currently) with this customer at some point in the future, and that the sale of the IP to the customer has been negotiated to avoid the customer having to pay a royalty in that event. BLG could of course charge for the use of any other proprietary IP that is required.
One downside to the sale of the IP is that the customer is now free to take the IP to another foundry. However, the projected volumes would need to be quite large, to justify the cost of qualifying at another foundry.
One thing I would like to know is whether BLG still retains rights to the IP in question, or would now have to enter into an agreement with this customer to use the IP elsewhere.
All IMO.
Just noticed the trading halt. Interesting development.
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