Ann: Trading Halt, page-170

Wonder if there’s a third leg to this, with @Phaedrus talking about JCR and royalty monetisation this morning.

If there’s anything to this third leg, then they could, not inconceivably, renegotiate the loan covenants, after the dust settles, with Oaktree or repay some of the loan in order to release their hold on all of the IP assets. The assets will be much more attractive if, say, they can be redirected to a royalty cum development capital “cash box” to increase the appeal of the vehicle to would-be partners. JCR could agree to do a seed capital injection in return for (a) participating in the future income stream from such a vehicle given how close FDA approval could be for kids aGVHD, plus (b) a promise from the company to buy back or an option by JCR to sell, their right to participate in the income stream, back to the company post aGVHD commercialisation at a certain muliple of the income stream, consisting of JCR’s existing royalty payments enhanced say by a percentage coming from any emerging revenue from kids’ aGVHD post FDA approval.

The royalty company can be a subsidiary of Mesoblast, so that the raising is not dilutive to Mesoblast shareholders.