Labwire Inc (LBWR)

[micham2012]

Creede:

Pure speculation on my part, but I would guess that Dexter has given some thought to an exit strategy 3-5 years out. It is my understanding that he has a ton of shares, and it will be difficult for him to sell into the open market. If our platform and know-how are valuable, it would make sense for both companies to "get to know each other."

While I don't know the business terms of the arrangement, I tend to think that this is the kind of event that might move revenues to a place where real earnings might be possible. The PR suggests this is likely. And if, as you suggest, USIS loses money on this business, it makes great sense for them to outsource it and get referral fees.

Of all the news that has come out recently, this seems potentially the most significant IMO.

Steve