Been thinking about your 6 months question.
Clearly an inflection point here however IMO ..... MGMT MUST EXECUTE NOW.
Dahl has already put out there the desire for large capital campaign. Given the recent news, the likely appropriate course of action is an immediate capital raise to finish up outstanding items that will produce revenue the fastest. Whether that revenue is commercial, license, option payments. It's clear that SOME CASH is needed, but NOT a giant raise.
IMO, if Dahl has fish on the hook, which I think he does, I think the best course is an LOC type deal where financier will provide money up to say $5-$8 million at ZIVOs discretion and at prevailing market prices at the time drawn. Minimum $500k per draw. Initial draw ... Whatever it takes to produce revenue the fastest. Recent news IMO puts ZIVO in much stronger position and as a result should be able to get money on better terms.
Have seen this type deal many times. Gives ZIVO flex to react IMMEDIATELY TO SUPPORT ACTIVITIES CONDUCIVE TO PRODUCING REVENUE THE FASTEST while limiting the dilutive effect to the capital structure.
I would anticipate a financing deal of this nature would be most advantageous and quite frankly give Dahl a chance to shine.
Within 6 months, commercial scale algae production, poultry GRAS and commercial sales via Nutriquest, option payments from Zoetis, license deal with a top 10 pharma, sales to nutraceutical market for human application, Grekin, Chipuras, would like to see Royal DSM link up with the algae instead of Wellmetrix, there are endless possibilities ......
This course should limit the need to draw against LOC deal assuming that revenues may be generated from licensing/development deals and Nutriquest in particular.
As this plays out, as I said, the valuation metrics change from basically being a bad joke for almost 2 decades, to those of a legitimate biotech with novel molecular candidate with potential target markets into multi billions each.
Inflammation and immune response ...
Pharma - multiple human and animal (Zoetis) candidates
Ingredients - multiple human and animal applications (Nutriquest), nutraceutical, food, beverage (health and sports drinks) and cosmetics (Grekin)
Nutraceutical - how about the glucosamine (joint health supplement) fantasy debunked and replaced by supplement provided by ZIVO eh ?????
How about a new class of sports drinks ??? Move over Gatorade !!!
Cosmetics/sunscreens/topical analgesics ?
The list can go on and on.
I did valuation metrics on ZIVO in the past based on the expectation of being able to isolate the molecule and sell into multiple verticals. I don't recall that I publicly ever offered those numbers mainly because I did not believe Dahl could do it, and the numbers would likely get quite the laugh. The number is Big. Still don't think Dahl can handle it though.
Food for thought ..... pun intended =)
Amigo Mike
