Last thing I heard was the CC.
I hope to hear more in mid August.
The postponement of the delisting deadline to January, combined with DTRA’s $44M, unlocks a whole new lease on life for PPHM – things are looking up.
As Jazz keeps pointing out, Barton Haynes would not have filed a patent that relies heavily on anti-PS mabs to clean up apoptotic debris unless he already had strong data on the efficacy of anti-PS mabs to do just that. Since PPHM and Chen are the only ones making anti-PS mabs, sounds like Bavi is going to be a centerpiece of the government’s new approach to HIV as well as hemorrhagic fever.
Based on what I heard in June, I expect the DTRA deal will open the doors to other government contracts with additional cash.
I expect the Duke publications will introduce a global paradigm shift in the approach to anti-viral drug development and will give PPHM a credibility endorsement as big as would have come from closing a BP mega deal. The difference, of course, is that the Duke, NIH, CHAVI, Gates Foundation endorsement moves the stock price without having to first negotiate BP license terms.
Given SK said some of the Duke publications “have been submitted,” I’m guessing we will start seeing these studies late Aug. and early Sept. I'm guessing that a few weeks after the principal Duke articles are published, perhaps in late Sept., the Company will close a non-dilutive bank financing, using the Duke endorsement, larger Avid revenues and, hopefully, a higher pps as items that will give the bank comfort in addition to whatever rights the bank may have in Cotara technology as collateral.
The transcript of the CC makes pretty clear that Mgmt would now prefer “to raise additional capital through non-dilutive structures such as a term loan or similar debt structures.” Not only did PL mention debt financing before Avid financing, he also said they were “actively” seeking debt financing --- an adverb not used later when he said monetizing Avid was still a possibility “under the right terms.”
The Avid deal was something the Company was being forced into this summer to accomplish the non-dilutive financing before the NASDAQ delisting deadline. Now that they have a six month reprieve on delisting, they can afford to let Avid revenues ripen for a while and solve their short term funding needs with a small non-dilutive bank loan. I’m guessing it will be under $10M.
IMHO, by late October it will be clear to R&R that non-dilutive bank funding is in place, Duke/NIH will have endorsed Bavi as a breakthrough AV platform, both Ph II Bavi cancer data and Ph II Cotara data will be coming in strong, and Avid revenues will be increasing dramatically. Facing these facts, I believe R&R will put out a buy recommendation this fall rather than wait for a R/S that is unlikely to happen, or if it happens is unlikely to hurt the pps. The time when a R/S destroys the value of the old guard’s position is when it is followed by a dilutive financing. A company that is well funded, doesn’t need to do a dilutive financing, and has bright business prospects, is the type of Company that doesn’t get hurt by a R/S.
The Company needed another 3 months for its business prospects to brighten through publication of the Duke studies, release of more Ph II Bavi data and a non-dilutive financing on better terms than were being negotiated in June.
By the grace of the Gods they got it -- PRAYERS OF GRATITUDE!!!
AI
