Brave 11:
Latest would be 06.04.22, unless amended by mutual agreement of both parties. Can't see why Titan would agree to a time extension, unless MDT was going to provide cash (in any form) to get us further down the road toward commercialization. Now, IMO - I don't think MDT waits for that to happen before wrapping up this courtship. The further down the road we get, the more expensive the acquisition becomes. Martha even used those words, by saying we prefer to buy early and grow our acquisitions. Regardless of how "early" Martha thinks they are executing this agreement, Mc should make him pay a LARGE premium. In any negotiation, there should always be a "sweetener."
Summary:
"To support development, Titan has received a senior secured loan of U.S. $1.5 million from Medtronic which was announced on April 29, 2020. The loan, which will be increased by an amount equal to certain legal, transaction and intellectual property related expenses pursuant to the definitive agreements, will be evidenced by an amended and restated promissory note, and will bear interest at the rate of 8% per annum. The loan is repayable on June 4, 2023, or upon the earlier completion of the last milestone under the development and license agreement or a Change of Control of Titan (as defined in the note). Until repayment of the loan, Medtronic may have one non-voting observer attend meetings of Titan’s Board of Directors. The loan will be secured by way of a security agreement entered into by Titan and pursuant to which Titan has granted a security interest in favor of Medtronic in all of Titan’s present and future property including all personal property, inventory, equipment and intellectual property."
The entire scenario and timeline for this loan is an iceberg. You see some of it, but not the important parts. Good question.
Good luck to all. Regards,BK.
