Medivet is still generating 2m+ annual revenue (increasing YoY) and signing new clinics up to stem-cell procedures, whilst continuing its partnership with universities on new animal therapies and vaccines (cancer) . IMO, There still seems like significant potential for the business, although MLA is increasingly looking like the incorrect operator to extract value.
I personally don't think it's worth walking away from the business for nothing, however perhaps stemming (no pun intended) the flow expenditure on that side of the business, cutting back (or delaying) on all none core research expenses, ie establishment of new labs etc and looking to boost revenue to attempt to get as close to self-funding as possible in the meantime might allow MLA to carry the business until the right suitor presents.
The loss attributable to the Medivet business seems loosely estimated around 1mill p.a, this is getting closer to being offset by the expanding human healthcare business. There is potential with quarterly revenue growing as it has and no further 'one offs' impacting the human business, that the overall business reaches a cash flow positive position in the next quarter.
I'm still projecting a sell of 50.5% for $2.5m, whilst retaining a 10% stake and a preferred arrangement on any equipment manufacture, though I think its unlikely to take place until sometime early in 2016 now.
All IMO, DYOR etc....
MLA Price at posting:
6.6¢ Sentiment: Buy Disclosure: Held
