Hi Dos
Couple of things to consider.
Have cut and pasted the announcement on the new deal that makes it easier to read.
OBJ Limited (ASX: OBJ) has signed a new agreement with Procter & Gamble for the exclusive rights to another of OBJ’s technology platforms
The commercialisation process of the technology will be conducted
over two stages,
The
first focusing on generating consumer responses to the technology
- The partnering company will pay upfront and standstill license and royalty fees over the course of the period of the initial agreement. This includes the delivery of a number of advanced units containing the technology to be used in various consumer trials that will define the end product designs during the second stage.
- This first stage will be conducted under an existing agreement that operates between OBJ and the partnering company, with an addendum to this to cover the new technology platform.
The
second for the product to incorporate these responses.
- Following the initial consumer work, a second agreement will be executed to allow for the refinement of new products utilising the new technology. This will include gaining feedback over a number of consumer trials expected to be conducted during calendar 2017.
Now the key items are
It is to be basically completed by end of year. That's two stages.
How can they do that in such little time??? considering a consumer trial could take a few months to get feed back each..
Also consider how long it takes to manufacture batches for clinical trial. Answer Most probably because the products are already built or tooling is ready.
Why was the 2016 product rollout delayed? Answer most probably because those products will be part of above as they become more interactive rather than standalone.
So with each rollout this year OBJ will get a license fee and royalties. So at least they get a license fee as royalty will be almost nil as it will need to recover licensee as I have explained many times.
Plain as day that an upfront is due and so is stand still payments. These should/could be in the next cashflow/accounts due July.
(20min delay)