I earlier skimmed the entire 'loan security agreement' with the bank and found it quite dismaying for what the minimal dollars they got and for what they have given up.
Upon more careful and detailed reading today, there is absolutely no doubt that this has the potential to truly and finally be the demise of Ocata. it's not longer years and years and scrounging for all sorts of minimal, toxic dollars, this is an agreement that totally wipes them out, including IP and everything else. A far, far worse situation than Geron which is at least struggling but still existing.
There are so many negatives and serious imponderables beyond the conditions of the securities loan agreement.
There eists now ay enough financing to complete a successful phase , it's millions and millions of dollars short. Not only is the the crucial factor upon which everything rests, besides hoped for eventual success, the miniscule dollars available to Ocata, when factoring in he monthly operating burn, will prove to greatly complicate and be a significant deterrent from getting numerous independent, budget and staff driven clinical sights to commit.
Couple this, however, with what has generally been agreed to be a possibly hopeful phase 1 study, but one that is terribly flawed and always designed to favor the biotech. Phase 2's have historically become company and clinical data killers, in something approaching 87% of the time. Lousy odds to say the least.
So many other factors intervene, from a very recalciant FDA for a stem cell medical procedure that has been show to have seemingly initially sometimes successful results, but has been shown to resulti in a multi year delayed tumor formation problems. In this respect, I see years of assessing data on he part of the FDA, not to mention that all but forgotgten very controversial early fetal research stages employed by lanza which have not truly gone away, merit or no merit, as best a I can see.One never knows when those early on concerns will resurface,the company's negating them notwithstanding.
Then in general, the start of a phase 2 has to be viewed, I guess as a positive, but given all I've expounded upon above, has a significant of being a fools gold eventual investment as it's been for the last 10 years. For me, the picture couldn't be any clearer as a deeply troubled company and a non viable high risk investment, especially all in the backdrop of a major changes in the investment world underway.
