I'm not sure its extrodinary for a "biospec" to be wanting to...

I'm not sure its extrodinary for a "biospec" to be wanting to keep their options open in ability to raise future capital. In fact I believe it would be remiss of a board of an emerging company not to explore all avenues as a continegency. There are so many risks associated with OBJ but I'm sure many shareholders are in for the huge upside if things go right. But in a very general sense they have the following risks that may require future capital...

- Potential clients renege, back away, slow down, change direction, change management etc etc - counterparty risk

- Products need more R&D expenditure, new products to be developed, existing products "tweeked " - Product Risk

- Distribution channels to market need investment, marketing costs, resource costs etc - Channel risk

- Key people need to be hired, new skills required, key people risk mitifated - Resource risk

and then of course there's the working capital requirements

So all sorts of reasons required to make sure all possible options are open to raising capital. This is a company that has no revenue but great IP, its kinda a no s**t sherlock moment that they will need funds to grow... all IMO.


Maddoc