Hey Gang,
I just spent about 15 minutes on the phone with Steve Burg. He was returning my call from yesterday prior to when I called Howard. Great conversation - Best yet by far.
We discussed why no PR on the new factory/web site.. He told me that the NICOSAN application is the largest event EVER to be placed in front of NAFDAC. 95% of all drugs used by Nigerians are imported. NICOSAN would become the LARGEST drug ever to be produced and distributed in Nigerian. He also said that the factory also needs to be approved by NAFDAC. Both the drug formula and the commercialization/development of the drug are before NAFDAC as we speak. This air a very complicated process, and a lot of politics are involved with this. Pandey is working hard every day to get this done. THE COMPANY IS AFRAID TO ISSUE ANY PR'S RIGHT NOW, BECAUSE THEY DON'T WANT TO UPSET/DISTURB NAFDAC IN ANYWAY. THE PROCESS IS SO SENSITIVE, AND NIGERIA HAS COMPLETE AND 100% CONTROL. Any screw up by XKEM, could cost dearly. No PR until final approval.
We also discussed the financing and dilution issues. No more shares have been issued, and the company is VERY CLOSE to signing a deal with UPS which Steve said is 100% not dilutive. They are doing everything possible right now to preserve shareholder value, and eliminate future dilution. The loan from UPS would support expansion of the plant in Nigeria as well as ongoing cash flow requirements until sales prop up. HE TOLD ME THAT XKEM IS REARING TO GO, AND READY TO START BLASTING OUT SALES AS SOON AS APPROVAL IS GRANTED.
We also discussed the fact the XKEM has completed testing in other parts of the world to find out where these plants can be grown outside of Nigeria. They have identified several regions in India where these plants can be grown, and have begun looking into the possibility of setting up a manufacturing facility outside of Nigeria as well.
AS FAR AS THE Q2 SALES DISCUSSED IN THE 10K. STEVE FEELS THAT THIS IS A GOOD TIME FRAME, AND EXPECTS APPROVAL ANY DAY.
The company has remained in quite period right now, because they do not want to create any adverse reactions from NAFDAC. When approval is finally granted. Look out. The PR campaign will be a machine and unstoppable.
ALRIGHT, I ONLY HAVE ONE MORE POST HERE TODAY, AND I CANT POST ON RB, SO I WILL SAVE IT FOR TONIGHT. I WILL ANSWER ANY QUESTION THIS EVENING.
GOOD DAY ALL.