The Catch 22 of the cGMP.
Ok it's implied and it's obvious. But to date, it hasn't been mentioned on this board. So here goes.
First let's state mgmt's intention as I see it. They ARE going to be building this facility and have hired a person to direct the operations of which.
What does this mean?
It means, that they anticipate the need for a $6M dollar facility to produce synDNA. They feel that the demand for this technology will be high enough to warrant the expense now. Are they gambling? Do they know something we don't? Are they just trying to establish some credibility to lure potential buyers? (who would you buy your popcorn from? A guy selling it out of his van or a bunch of guys selling it out of a legitimate looking facility?)
The Catch.
In order to finance this construction. We need money. In order to obtain money (in the short term) we need to sell our excess synDNA capacity or dilute shares. So while we need the facility to make money, we need money to make the facility. Although, I am pretty sure... the money for the facility has already been set aside from previous PPO's. (I forgot where, but I read this)
Maybe the lack of progress is because they don't have the demand for it yet. But I can't see why they would announce it if they didn't already have the demand. Unless some potential buyers backed out, this doesn't make sense. Maybe they're being priced out of land and are holding out for a better deal. Maybe they already bought the land and the facility construction is underway. Time will tell.
