pphmtoolong, Avid is worth about 1$ per outstanding common share (tax benefits about 0.50$) (see my post with personal opinion valuation but in the range of RRdog's results with less info at the time).
A spin off WOULD NOT allow to weight Avid revenue against tax benefits and if those tax benefits end up in a construction, eg IPO, then in the US they do NOT have the same leverage anymore.
Therefor for now, income first covers burning rate and then generates income that would allow to cash in on the tax benefits.
Then and only then would a spin off be possible WITHOUT loosing the tax benefits because if PPHM R&D comes to stand alone it will NOT generate sufficient revenue to recuperate on the tax benefits and actually it would see its COST raise because Bavituximab would have to be purchased with the 'spinned off" Avid and that would include a PROFIT for Avid.
I think the brilliant idea of letting a lucrative chain of biosimilar factories generate revenue to sponsor the PPHM R&D and reduce ATM/PPHMP usages and avoid loans, must be maintained. It has the strategic value of making it much more difficult to cut PPHM of of its funding. If PPHM/Avid becomes profitable, as announced for 17 months from now, then keeping the LID on the PPS make no longer any sense.
It is my PERSONAL OPINION that the LID is ONLY there to handicap companies that no longer line up the pockets of bankers by taking expensive loan with suffocating loan terms to keep them from showing others the way AND that the LID is there because certain categories of Wall Street firms do not like listed companies to start doing there own deals and excluding them from MILLIONS of DOLLARS of commissions and fees. We have all read the articles on what companies like Piper don't hesitate to do to send a signal to companies that do not allow themselves to meekly be milked.
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