Biostax Corp (BTAX)

[noreen]

Correct, in that we do not have a purchase order yet. I thought the contract in the 8-k looked great. And we are now guaranteed our first purchase order by 11/22/17!

Simply the fact that Omaera is able to guarantee such an explosive growth as contracted minimums (meaning Omaera will owe the money even if the demand for Lodonal is not there) tells us that Omaera is overconfident that this pill is going to sell, and the growth will continue at a favorable rate.

And why wouldn't they be overconfident??? They should be.

Past studies, including the bridging trial in Nigeria, have been extremely favorable IMO. And these Africans with HIV are UNTREATED (the majority of them anyway). And the drug is very cheap. There is no other drug that will be competing with Lodonal.

If these are our minimums, I would speculate that the actual sales will end up being significantly higher.

The Company will have up to 14 calendar days from receipt of a purchase order from Omaera to deliver the requested Products to Omaera. The Company shall send an invoice to Omaera for each shipment of its Products. During the first 12 months of the Agreement, Omaera will pay the full amount of each invoice in cash, without any deductions, by means of bank transfer on or before the date of shipment. After the first 12 months of the Agreement, the Company will provide 30 days credit terms from the date of invoice for payment. The Company shall have the right to vary the credit made available to Omaera, and to restrict supplies, if Omaera fails to make payments in accordance the Agreement.

Pursuant to the Agreement, Omera is required to purchase a minimum number of pills from the Company for specified periods over the term of the Agreement (the “Minimum Purchase Commitment”). The minimum number of pills required to be purchased by Omaera for each period are as follows:

First Half of First Year 1,080,000 Pills
Second Half of First Year 3,600,000 Pills
Second Year 14,400,000 Pills
Third Year 28,800,000 Pills

If the number of Products purchased by Omaera from the Company does not, in the three-year term beginning on August 22, 2017, or in any of the above-captioned periods, meet the Minimum Purchase Commitment, Omaera shall, at its option, either (a) buy the quantity of Product required to meet that period’s Minimum Purchase Commitment, or (b) pay to the Company the net profit that patent laboratories would have obtained from the sale of that Minimum Purchase Commitment of Product, at the rate specified in Schedule 1 of the Agreement, or a higher rate if to the extent that the Company may have increased the price per pill.