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Re: Gold Seeker post# 25362

Thursday, 02/04/2010 8:21:09 PM

Thursday, February 04, 2010 8:21:09 PM

Post# of 30387
GS stated, "Another fault in your logic. "A multi-billion $ company would not make any decision based on a minimum annual royalty.""
and
"If that is true, they why would they even want an amended agreement. Moro would not have been stupid enough to have wanted it. It was the trigger for the stock
to drop to 5 cents.

Sense all you do is speculate, let me do the same and share the more plausible explanation.

Abbott was never even considering returning the license, they were just putting Recaf on the back burner after the G.E deal fell through. They began to reorganize as a result and suspend projects for the time being to cut cost and so forth. Dr. Moro was upset by this new development because he is anxious to see Recaf get through trails and the FDA so it can be marketed. Dr. Moro approached Abbott with an ultimatum to allow him to continue developing Recaf with their support in exchange for higher royalty or terminate the agreement to allow room for another licensee. This made good business sense to Abbott because they wanted to retain the license, would be able to share the cost of development (and use the intricate knowledge and understanding Dr. Moro has about Recaf full time). An additional caveat would be the end to the annual minimum royalty.

Let's let the board chime in and tell us who they think has the more plausible explanation to this mystery!

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