Hello SGLN,
Having set aside some time a couple weeks ago to express concern, I felt it necessary to address the recent announcements from Surgline. I would like to point out that I am beginning to take a cautionary stance on information.
First and foremost, thank you, Toland, for addressing the topics of financials and a new CFO. I appreciate your willingness to inform shareholders and am very grateful.
Alright, we are going to be distributing a sublingual immunotherapy product. The manufacturer of the product is currently waiting on FDA approval for the packaging. Once the packaging has been approved (Which to my estimates should be announced in the coming days.), Surgline will be able to distribute the product.
If we are distributing the product, what distribution agreement do we have in place? Do we get exclusive rights to sales in North America? US? Or is there no exclusivity in our sales terrority? Can another company begin selling into our market? What are Surgline’s rights concerning the agreement? Is the manufacturer allowed to compete with our market?
I am of the opinion that Toland has high hopes for the product. If he is preparing to hire a CFO (And the company was interviewing on the last press release on 7/12/14.), then I surmise that only a couple of things could be happening or preparing to happen. The first option is that Surgline is already becoming self-sufficient by selling products in their catalog. This would justify his reasoning for hiring a new CFO. The second option is that Toland believes (And perhaps already has sales lined up) that he can sell the sublingual immunotherapy product in enough quantities to pay for filings and a new CFO. It is also possible that a combination of option one and two is happening, too. (Note: From the press release, it appears to be option two.)
There is little to argue if option one is occurring. This would be fantastic and show that our patience (Though sometimes stretched very thin) actually paid off. The boulder has begun rolling down hill and it won’t be much time before we create huge momentum.
More concerns come to light if it is option two. If Toland already has sales in line, then it may not be too bad. However, if sales are not already set up, what is the reasoning for hiring a CFO? I am not saying that Surgline doesn’t need a CFO, only that I am trying to figure out the justification for the hire if you are not 100% sure of the sales outcome.
I would like to assume that Toland would reason to the same outcome, but cannot be certain, so I simply state the questions that come to mind. I know that he cannot easily release the type of detail that could ease my mind. I can only hope that he isn’t the type of guy that goes by a handshake. (Gone are the days of trusting a man’s handshake. GET IT IN WRITING!) I believe in the company and think that if everything comes to fruition as stated in the last release, we will be moving much further forward in the coming months than we have in the last year. I look forward to seeing what occurs in the coming month.
Again, Toland, thank you for addressing these issues.
Sincerely,
C.
AI
