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clock Created with Sketch. 02/08/16
16:37
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Originally posted by Taurean7
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An opinion for what its worth. Alexium is in the ‘quiet period’ One of the requirements immediately prior to US listing is that a company enter a ‘quiet period ’ in which it makes no attempt to promote the sale of its shares to prospective investors. Violation of this restriction is referred to as ‘gun jumping ’ and results in the SEC imposing a significant delay on the process. Public discussion of the company’s future prospects is viewed as promotion in this context. A major licensing partnership is imminent Alexium would have a sudden need for extra working capital if it were to enter a partnership with a large chemical company (LCC) to licence the FR chemistry through its own established production and distribution infrastructure. That is, LCC may wish to completely replace its toxic brominated product with Alexiflam chemistry. There then would be a requirement for Alexium to meet the significant demand to supply the Alexiflam materials and know-how. This arrangement would see a change in the toll manufacturing business model with possible cost sharing, as referred to in the Moelis note. The return for Alexium would be hefty annuity style royalties.
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Great post T7,
(20min delay)