Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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I can see that " triggering additional undisclosed milestones" could be interpreted both ways.
Either additional payments or additional works. Maybe Dan can clarify in a interview.
Good stuff Soup.
I read this part differently
“Further cannabinoids have been added to the agreement, triggering additional undisclosed milestones and remain under development..."
I think adding the further cannibinoids has already triggered additional payments. There may well be further milestone payments on top, but if there hadn’t been additional payments made wording would have been along the lines of “Further cannabinoids have been added to the agreement, which will/may trigger additional undisclosed milestones, and remain under development..."
We can only guess at this stage tho.
With reference to the Ebers number of milestones, I think the wording of some parts of the RNS don't help and are slightly contradictory. So I do think there has been one milestone payment, but not any others which I think should read as new milestones to be achieved.
Looking at the section in detail again....
"Ebers Tech Strategic Cannabinoid Collaboration Update
We are pleased to confirm that as a result of on-going development activities under the previously announced strategic cannabinoid agreement with Ebers Tech, a further patent filing has been made in relation to novel cannabinoid cocrystals. This latest patent filing triggers an undisclosed development milestone payment. Further cannabinoids have been added to the agreement, triggering additional undisclosed milestones and remain under development, with the potential for further milestone payments to Nuformix in the near-term."
So, it says 'a further patent filing has been made' which is definitely written as singular, just one patent. Then is confirmed by "This latest patent filing triggers an undisclosed development milestone payment. " Which again is written as a single filing and single payment.
The confusion occurs with the word 'triggering' in the following
"Further cannabinoids have been added to the agreement, triggering additional undisclosed milestones and remain under development..."
I am reading the use of the word as they have created new milestones which have yet to be achieved, triggering isn't really the right word to use, although I can't think of an alternative.
The closing of that sentence reads "with the potential for further milestone payments to Nuformix in the near-term". Which confirms that milestones for these new items are in the future.
We know the original Ebers deal covered 9 co-crystals, this now has been expanded to further cannabinoid opportunities as NFX agreed to solely work for Ebers in this field.
A bit forensic I know, but not much else to do....
Thanks Soupdragon. Six figure sums make sense based on the early NXP1 payment and the previous Ebers patent.
I'm reasonably confident that this revenue plus the placing money will see them though till they wrap up the NXP2 deal.
It was encouraging to see the NXP2 deal still being worked. After all the silence I was worried it had fallen through.
I've been in NFX over a year now. I can wait a bit longer.
The China money is a write off. I think we should stop mentioning it. Every time a RNS comes out saying we haven't got it, the sp tanks.
Sparkington, I posted the below on the other forum site explaining what revenues may be current. All guesstimates but trying to form some sort of logic.
We know from today’s ‘Business Update’ rns that the Vistagen collaboration included ‘immediate revenues’, so I was looking at how much cash Vistagen has to gauge what sort of payment might have been made.
From their filings, they had $4m after raising money at the end of January.
As the monies are a kick off to the collaboration they will be low to cover initial research. We know from both the Ebers and NSB work that NFX have been paid circa £500k for this type of work before.
Hence my thoughts, Vistagen would likely have paid a similar amount.
In terms of Ebers, the previous patent filing generated a milestone payment of £400k, and Dan has said that the big money will only come when testing occurs. So the news today about another patent application will likely have generated a similar income.
All my guesstimates but based on previous history of how the company operates, the positive is that these two payments combined, plus the money from the placing should cover this years costs to date.
Also worth noting that the company is still chasing the China money.
What are people's thoughts on revenue? It looks like to me there are 3 payments in the RNS.
One for the filing of a new patent for Ebers.
"Further cannabinoids have been added to the agreement, triggering additional undisclosed milestones"
Does this suggest a second payment?
Thirdly, the new agreement with Vistagen has " immediate revenue".
We don't know figures yet but it nice to see.
Does anyone know whether Ebers is selling products using the first patent NFX filed last year?
At some point there will be 20% royalties income as well.