Very well spotted pddy.- and very interesting. I telephoned the agency this afternoon to see if I could glean anything from them. They told me they would get the appropriate member responsible for the account to ring me back - so far, nobody has. Hope you don't mind, but I have drawn attention to your post on ADVFN and iii.
I have been posting for months another another thread re this inevitable outcome. I assume if investors follow BB's they do so on any threads posting current info (LSE, iii and ADVFN).
But to answer the question and please note court doc links.
The deal was up for renewal. TTK thought RB were about to dump them and move production in 2013/14 to China and a new factory. TTK/RB is a JV. 6 on the board, 3 of each. Two of RB stood down for replacements, but TTK slotted in 2 of their own, making the split 5 v 1. They they voted in margins of 50% up from 15%. They wanted a 5 year contract and minimum orders. RB challenged the move re 5 v 1, which in normal circs is illegal. However they they find India company law allows. TTK stopped supplying, to try and force RB into 50% and the 5 year deal. RB challenge and demand supply at the 50% rate until matter sorted. Court orders TTK to supply at 50% rate. TTK fail to do so. RB go for contempt of court. No jurisdiction, so it all ends up in India. Dec 11 madras high court throw out contempt leaving RB nowhere. TTK start doing deals with other condom suppliers with Durex condoms. RB challenge and TTK ordered no sales worldwide but can do so domestically. Thus Production by TTK has been dead since last year. RB have no-where they can prodcue it. They tell FUM men sensitve issues to be addressed hence the delay. All BS Ignis were buying pre madras high court Dec ruling and FUM appeared oblivious to the TTK issue. I suspect Ignis didn't know either. No way can it ever be produced at TTK which means a dossier re-submission for a new production. However production will need a new factory for RB to deal with other products to make room for csd. No launch prob until 2014 imo.
It's a right mess, and that's why I told all I know to get out over 6 months ago. All on ADVFN and a bunch of idiots there ridiculing the suggestion. I moved over to IOF along with many other FUM investors. IOF is a far bigger prospect than FUM, even if everything was OK with CSD,
Low 40's arriving v soon. Worse if FUM walk. Whatever happens they will need a new dossier submission
Might be wrong but the way I read this anouncement is that it is Futura that have instigated the negotiations. It is becoming clear that because of RB's production dispute in India, they cannot meet their comittment to produce CSD500 so Futura are looking to end the agreement with RB. They would then be in a position to enter into an agreement with a company that can deliver production so they can start to earn the revenues.
We've ;long mentioned it (lso no way RB would want to pay the high royalties.
So it's either walk away time for FUM, or RB want royalties reduced for not too an attractive cash deal. Either way csd is a long way off launching. Bail out time was long ago and many did. Still bail out time imo as off to the 40's we go.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.