Quick reply RE: Contact from cynata.com RM Ross Macdonald Thu...

Quick reply

RE: Contact from cynata.com

RM
Ross Macdonald
Thu 8/12/2016 4:27 PM

Thanks for your note and for your interest in Cynata and the proposed Fujifilm deal.



If there was anything that led us to form a view that the deal had gone off the rails then we would be obliged to announce that.  You can safely assume that, since there has been no such announcement, we remain confident about completing the transaction.  Such sentiment is unfortunately not "news" and so paradoxically the market tends to assume the worst when we edge closer to our suggested completion date!



Let me add that it is a complex deal with a number of separate contracts.  Moreover, we have to ensure that all aspects of the deal are consistent with our relationship with WARF.  This has been made somewhat easier given Fujfilm's existing connection with WARF through their acquisition of CDI (much of whose technology came also from the same source as ours).  Nevertheless, it would be fair to say that progress on Cynata's side, being a small and nimble company, is quicker than at Fujifilm where our deal is competing for resources, eg their legal department, with other matters that Fujifilm is managing at the same time.  Indeed they are in the midst of a very big deal with Takeda at the moment.  It is also pretty common knowledge that the Japanese are meticulous and won’t be rushed.



Although we are running up to Christmas it is worth noting that the somnolence that affects many at this time of year is not the case in Japan.  So, save for the Emperor’s Birthday on the 23rd, there is no hiatus because of the festive season (that goes equally for me and our legal counsel until we close the deal!).



This is a long answer to your question when a short "yes" might have been sufficient, but since you took the time to write I thought it appropriate to give you a little more colour!  Sure it would have been nice to close the deal months ago but this is unrealistic and it trivialises a strategic deal with a major partner that will quite simply be transformative for Cynata and our shareholders.



Kind regards


Ross



Dr Ross A Macdonald

Managing Director and Chief Executive Officer

Cynata Therapeutics Limited