The option for the CORE-NK platform is for 6 months, at which time CHM have the exclusive right to exercise it and that is when the upfront payment will be made. I suspect they want the phase 1 trial to read-out, and if positive.. they'll move to full licensing of the CORE-NK platform.
They won't disclose what the upfront and milestone payments are, not until well after they make the payment (following 4C).
But to give you an idea, the latest 4C shows that they only paid $600k for the upfront CDH17 asset, which left around $4.4m which was raised from the IPO for other collaborations such as the CORE-NK platform.
Jen said the upfront for the CORE-NK platform will be funded from existing cash reserves.. so the $4.4m should cover it with ease.
They also have some cash for phase 1 clinical sites that are due to open, so $5m there to cover those costs.. and also another $5m unspent on R&D, as well as the unspent provisional amonts for admin, employment etc.
If they manage their cash well, they should easily get to June without the need for a cap raise.
CHM Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
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