did we expect the shorts to give up, page-8

Green looks good ...here is the response.
glta
Q





Mar 18
$UNIS - Stone Street Just Another Clanging Monkey

$UNIS - Unilife finally closed above $5.00 yesterday and its no coincidence that one of the "profits" of Seeking Alpha has come out to again bash the company. Without picking apart everything this "Advisor" has written, let me get to the most important and egregious misstatements.

Royalties - the author overstates the royalty rate that the company will pay and he also mistates what the effect of the royalty effect would be on the company's shareholders. The maximum rate is 2.75%. As revenues increase the rate actually goes down. When the company achieves $150MM in revenues the royalty rate is 1.33%. That is an insignificant amount. Plain and simple this author is just trying to scare people who aren't informed.

Additional Capital - The next two $10MM capital infusions can come in December 2014 and June 2015. The "Advisor" states that they December '14 and December '15. These are just their subtle ways of obfuscating the truth.

Asset Sales - His statement that "asset sales by Unilife require immediate payment of the proceeds to Orbimed is also a misstatement. The 8K says that but only under certain circumstances. Those circumstances have not been made public and they could materially affect what is paid and when.

Debt Covenants - the author's broad assumptions about violations of existing debt covenants is ludicrous. If the new debt violated any covenants the new lender would not have entered into the agreements nor would Unilife.

Lastly, Equating the Royalty to equity dilution is equally ludicrous, especially when he misstates the percentage. The Royalty is minimal and will be spread over years. At 150 mil in revenues, it amounts to just under $2 million, which on 104 million shares outstanding is 1.3 cents/share.


Posted 31 minutes ago by Stuart Fine