A failure of the pharmaceutical business will not have a...

A failure of the pharmaceutical business will not have a significant impact on TFC.
The purchase price was around $2.5m in cash (already paid), $23m in TFC scrip plus incentive payments up to $150m. Most of the incentive payments are paid from the cash flow from the royalty stream from selling the products.
In effect, TFC is developing a pharmaceutical market for sandalwood oil for the outlay of $2.5m in cash. If successful, substantial incentive payments will be paid BUT TFC will have a market for its oil where it is the only supplier.