Nant deal is the best ever, page-2

I could not agree more. From what we know already, this is the strangest deal that I have ever seen. I am concerned that Nant is simply passing all the risk of their Pll trial on to Benitec. Without Benitec, Nat would have spent the $5M on their own trial. Now, they still spend $5M but get Benitec shares in return. Sure, we get royalties if the Head and Neck Cancer treatment is commercialised but so do Nant. If the drug fails, we get nothing and Nant gets Benitec (pretty much). Unless the final details of the deal include a non-dilutive funding component, then I think this is a very risky strategy for Benitec and we shareholders.

Without this non-dilutive contribution, Benitec will still have to raise capital to fund its other programs. Nant will be the major beneficiary of this because of its large stake in the company. Even if the head and neck cancer treatment fails, Nant, through its share ownership, will still have the cash and earned value of the other programs to fall back on. In other words, Nant cannot lose.

Before, anyone starts jumping down my throat, I am not saying this is a bad deal. In principle, I think it is good but we do not have a enough details to be sure that everything is rosy. If there is a non-dilutive element of the deal, then a share price increase should be sustained and my concerns will evaporate. If not, we better all pray that the antisense treatment is successful.

I'll reserve my final judgement until I see what is announced at the end of the month.