From my understanding of the agreement we have not covered our share of the start up costs -DSM have completed the initial scale up costs of production but that does not mean we are not drawing down a continued share of same from our share of profits.
Agreed,the next set of results will be interesting,and should reveal all,the only thing in that statement that sticks out was" Initial start up costs of the powder,more costs to come?No one knows how much Dsm are selling and what is the profit split,hopefully meet at the Agm(wherever it is)
this is far mor positive than i was expecting they have covered set up costs which they stated were substacial so must be generating a good revenue
RNS part 2
if raised, would be sufficient to enable Provexis to meet its working capital requirements." However to finish on a positive note "An increasing number of further commercial projects have been initiated by DSM with prospective customers, with good prospects for these projects to be launched as consumer products. Interest in the technology exists in all major global markets." The next set of interims should be interesting!
It is indeed welcome news that revenues albeit modest ones have restarted.Further good news was hinted at in this sentence "The initial powder manufacturing setup phase for Fruitflow® has now been concluded, and a reduction in Fruitflow® powder production costs was realised towards the close of the quarter ended 30 June 2014." It is reasonable to assume that whilst our contribution to set up costs which has been amortised and will continue to be deducted from out bottom line for the foreseeable,any increase in revenues from new or existing sales of FF will add to our share going forward.There will also be an increased % share at some point when the various performance milestones (as mentioned in the terms of the AA) are met. However we have limited cash and associated with that are various risks which the FD has detailed in the rns: Quote "Principal risks and uncertainties In the course of its normal business the Group is exposed to a range of risks and uncertainties which could impact on the results of the Group. The Board considers that risk-management is an integral part of good business process and, on a bi-annual basis, reviews the industry, operational and financial risks facing the Group and considers the adequacy of the controls and mitigants to manage the risks. The directors have identified the following principal risks and uncertainties that could have the most significant impact on the Group's long-term value generation. Funding and other risks Provexis has experienced operating losses from continuing operations in each year since its inception. Accordingly until Provexis has sufficient commercial success with Fruitflow® to be cash generative it will continue to rely on its existing cash resources and further funding rounds to continue its activities. While Provexis aims to generate licensing revenues from Fruitflow®, there is no certainty that such revenues will be generated. Furthermore, the amount and timing of revenues from Fruitflow® is uncertain and will depend on numerous factors, most of which are outside Provexis' control due to the terms of the Alliance Agreement. It is therefore difficult for the directors to predict with accuracy the timing and amount of any further capital that may be required by the Provexis Group." Factors that could increase Provexis' funding requirements include, but are not limited to: higher operational costs; slower progress than expected in DSM attracting customers to purchase Fruitflow®; unexpected opportunities to develop additional products or acquire additional technologies, products or businesses; and costs incurred in relation to the protection of Provexis' intellectual property. Any additional share issues may have a dilutive effect on Provexis Shareholders. Further, there can be no guarantee or assurance that additional equity funding will be forthcoming when required, nor as to the terms a
Worth what someone would pay, and it doesn't look like anyone is bashing their doors down to get it. I wonder if it may be revived once Fruitflow revenues could support that? Selfishly I hope not, but on the other hand, if a treatment for that horrible illness can be developed.
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