Ann: MSB Enters Into $75 Million Non-Dilutive Credit Facility, page-133

there is plenty options for Hercules to feel comfortable and have decent IP as security for their loan.

For assets to be able to be used as security, they needs to be able to be readily easily monetised at the time of the issue of the loan, and not assets that might materialise in some shape or form in the future (because those are not secure assets).

In that context, you've itemised one US$6m payment due from Tigenix, plus royalties ex- Japan, which are currently running at a rate of around US$2.5m pa.

For starters, MSB will be consuming the US$6m received from Tigenix (it certainly is not going to be bonded in favour of Hercules), so really the only securitisable value that one might be able to ascribe is to the Japanese royalty stream; so, even if you apply a very generous cash flow multiple of 20x, the securitisable asset value is 20 x US$2.5m, which equals $50m.

Which represents a significant shortfall on a loan amount that will be close to $120m (including capitalised interest) when it matures.