Thanks myroncGiddyUp was right to reply wondering if an upfront...

Thanks myronc

GiddyUp was right to reply wondering if an upfront fee on an exclusive would be more than double the market cap.

I say market cap is of no relevance to a group like Colt when they are analysing their potential sales figures selling our shotguns.

Upfront payments like I mentioned serve two purposes - a big 'thank you' for exclusive rights, and recognition for the massive R&D money burn suffered by the company that has agreed to give exclusive rights.

The above is often seen when biotechs reach commercialisation.

As for our company getting a $20M pre-payment for providing exclusive rights, well someone needs to look at shotgun (plus ammo) sales figures to see if it is plausible. I haven't yet, but my bones tell me such a prepaymet from a massively wealthy company like Colt ain't at all stupid to consider. Imagine for instance, if the exclusivity involved sales to the US armed forces...

It just could be OK.

We'll see.


good luck