Please disregard that previous post. Somehow I couldn't fix it.
I can't just call this a duck - yet. And I have use that analogy to win an award protest argument at the Pentagon - a long time ago. I keep going back to the question as to why? Why the milestones? Why the secrecy? The secrecy part is easy. Because you don't want to confirm any speculation, because it can lead to unintended competitive consequences. You can't predict other competitors actions or future events. Finito. It's the milestones that suck all of the air out of the room. Here's my speculation as to why milestones? And why there's a conditional agreement for development, for the next 8 months(?). I'm pretty sure Roll presented a calendar of events that matched up into spring of next year.(?) The loan sets the tone of the conditional partnership as friendly. Otherwise TMDI pays off the loan early. The development agreement is the key. MDT tied up all of TMDI resources. And turned them into a $41M date, an extended courtship and a job interview. By that I mean, even if JNJ, or an other competitor wanted a friendly partnership with TMDI, there's nothing left of TMDI except SPORT in its current functional condition. JNJ can't get SPORT b/c MDT has the IP tied up, by mutual agreement with TMDI not paying off the loan. Those are the handcuffs. TMDI has no additional human resources or capacity to manage any other product development. Those milestones 3 & 4 I'm guessing have to do with integrating the IP into the multi-port. Which is another reason why TMDI established the office in Charolette - b/c Genova lives there. (That piece fits too). However, I think the multi-port is NOT the priority. It's secondary to SPORT, which is why MDT made TMDI get the $18M. If it turns out the integration is more difficult b/c of lack of engineering resources or other etc.... the agreement can be modified. Also, having an MDT person on the Oversight Committee for this possibility fits. (Pieces must fit.) And I think $41M is not enough money to integrate the IP to completion. This is speculative, b/c we don't know what is in #3 and #4. #4 may not contain complete integration. But, I also think MDT will see the benefit of what can be done and buy TMDI. Does anyone think that MDT will go this far and release TMDI to the competition? I think TMDI is bought for a lesser amount. And that had better not been negotiated yet. Here's my final point as to why I think MDT bought that offer. Both the Bod and CEO have a fiduciary duty to the business's shareholders. That duty wouldn't be compromised if MDT is a shareholder too. So again, I speculate that a friendly investor, or associated company of MDT bought that offering. I don't know how JNJ, or others can do it now, except a long, slow, up-hill slog to find or develop IP to compete/participate. Or.... JNJ could try to buy MDT later. Wow. Isn't guessing fun? I don't know what other dots there are to try to connect. IMO. Roll, if this is what you meant before, sorry it took me so long to connect these (speculative) dots. Could you try to write a little more clearly so I don't have to think so hard? Good luck to all. Regards, BK.
