Member Info for Billy-Bunter

LiquidSilver,

A brief response to your questions:

AVO are an AIM listed technology company, who have been developing a next generation proton therapy system. The AVO PT system can treat tumours more effectively and with less chance of damage to surrounding good tissue than current PT systems. It is also more compact and requires less shielding than existing PT systems, allowing the AVO PT system to be installed into a normal building. Whereas existing PT systems require the build of complex and expensive custom buildings into which they are installed. These differences offer superior patient treatment and reductions in building/installation costs that saves many 10s of millions of pounds.

AVO are pursing both outright sales of systems to customers as well as revenue sharing arrangements from patient treatments.

AVO are at the stage where they have a first PT system built and working in Daresbury, UK. This achieved the milestone of reaching 230MeV capability a couple of months ago, the proton speed required to treat tumours including those deep in the body. They are also working through the certifications process in the USA (an FDA 510K) and Europe (CE marking), required for patient treatment. The approvals processes can take time. The 510K approval is more advanced than the CE marking.

As things stand AVO is at a pre-revenue stage. Thus, funds are needed for AVO to be able to continue its day-to-day operations as it works through the certifications process. £20M is enough to keep AVO going for about a year, but I’d prefer if more funds are raised, so they can fund the build of some PT systems now. Meaning they can be delivered more quickly when the certifications come in and in turn pull forwards/accelerate their revenue plan.

Researching AVO to fully understand it takes time. I would recommend that you do take the time necessary to fully research the company and sit through the online communications. Loosing interest quickly when researching the company could leave you with your fingers badly burned.

I hope this helps.

B.

I think they need more than £20M but even so, I expect them to raise the money via one or more placings. Its just going to be at the expense of a lot of additional 25p warrants.

B.

Some nice buys going through..... Like you, I may buy a few more next week.

Happy Christmas to all on here!

Bill

“ shouldn't have to rely on the research here”

It’s a nice idea, Potnak, but all too often not the way the world goes around. I’ll be continuing to do my own research, probably most of it away from the board after the kicking I took for openly contemplating that GSK might not carry on with 737.

Please do keep posting as you are. I credit you as being one of the more level headed and sensible contributors to this board.

B.

Oh dear…. “ contained” should have read “continued”…..

* ownership

I should conclude by saying that I don’t see transfer of Arising IP opener ship to the CPF as any kind of a showstopper. With the way the agreement is written the CPF (and this Sareum) can get on within using and licensing it. It would just put the CPF in that bit stronger position again if they could obtain full ownership. Particularly of any new patent (I’ve seen mention here that `Sierra files for a combo one) so at a very basic level they can make sure it gets contained with and maintained, rather than allowed to lapse by mother party (Sierra).

B.

To clarify on what I found, there is a ‘Arising IP’ description in the Definitions section of the license agreement. It reads:

***“Arising Intellectual Property” means all Materials and Know How (other than that comprised in Licensed Intellectual Property) conceived or generated after the Effective Date by or on behalf of ProNAi in the course of exercising the licence rights granted under Clause 3.1; and any Patent rights owned by ProNAi as a direct result of exercising the licence rights granted under Clause 3.1 which claim any such Materials and/or inventions described or comprised in such Know How.***

This basically covers anything new, including patents that come up after the agreement was executed. This Arising IP term is used in two places in the agreement. Both in the Termination section, clauses 15.1.9 and 15.1.11.

15.1.11 reads *** 15.1.11 ProNAi shall, at CPF’s cost, within fourteen (14) days of the date of termination of this Agreement disclose to CPF (or its nominee) all Arising Intellectual Property.***

This basically means that one termination is reached Sierra has to promptly pass anything new that has come up (including say patents, results data, etc.) to the CPF.

15.1.11 reads *** 15.1.9 ProNAi hereby grants to CPF under the Arising Intellectual Property a perpetual, irrevocable, fully-paid, sub-licensable, worldwide, non-exclusive licence to research, develop, make, have made, market, use and sell Licensed Products to the extent falling within the scope of the Arising Intellectual Property.***

This means that the CPF get a royalty free ‘do whatever they want with it’ (including license on) any of the Arising IP, such as new patents.

HOWEVER, FOR CLARITY: what I am not seeing (yet at least) is anything that explicitly deals with ownership of the Arising IP. Being transferred to the CPF. From what I’ve been able to read thus far using key word search etc,in what is a long agreement, I’m concluding that Sierra will own the Arising IP, but CPF will have a free ‘do whatever they want’ license to it. So, the CPF can pick up and run with the Arising IP and can’t be blocked by Sierra/GSK from using it.

Naturally, It would be great for ownership of Arising IP NEW PATENTS to transfer to the CPF. My current conclusion is that isn’t covered in the license agreement and would need to be sorted out with some kind of side agreement. Perhaps a question for someone on here to put to the team at Sareum.

When I get more time over Christmas I’ll print out the entire agreement and go through it line by line, to see if there is anything I’ve missed.

Hey Potnak, like you I’m a private shareholder who in my case happens to work within the drug discover/research end of the pharmaceutical industry. Been here for 25 years. I’m a business owner, which develops and sells products used for the storage and handling of the many small compounds research labs maintain and use for their drug discover efforts. We’ve got 100s of customers including some of the names that get mentioned on here regularly.

So, I’m pretty close to this and unlike WIP am still here and for real, even if I may have previously rubbed some others on here up the wrong way. As of now I’m holding about 300,000 shares.

I’m not a legal expert but do have to look at legal agreements on a regular basis for my business. Everything from NDAs, through to sales contracts, R&D and manufacturing agreements, through to previously even technology license agreements which have included ‘improvements’ clauses to cover new IP, etc.

B.

Clauses 15.1.9 and 15.1.11 within the EFFECTS OF TERMINATION section both refer to "Arising Intellectual Property".

Reading these it looks like Sierra/GSK have to disclose all new patents they may have filed to the CPF within 14 days of termination and CPF is granted a perpetual license to them. But, I don't see anything in there about new patent transfers upon termination. I guess that would need to be sorted out via some kind of side agreement.

B.

Hold on! I just looked again. I think this is covered through the definition "Arising Intellectual Property", defined as:

means all Materials and Know How (other than that comprised in Licensed Intellectual Property) conceived or generated after the Effective Date by or on behalf of ProNAi in the course of exercising the licence rights granted under Clause 3.1; and any Patent rights owned by ProNAi as a direct result of exercising the licence rights granted under Clause 3.1 which claim any such Materials and/or inventions described or comprised in such Know How.

I had a read through the agreement and couldn't see anything that covered new patents and what happens to them.

B.

Hey, Potnak
You are one of the more level headed contributors on here, so I'm interested to know you opinion. If 737 gets relicensed next year and the P1 trial concludes with good results, where would you expect the share price to be?
Thanks,
B.

Yes, it looks like there is already some interest from third parties in 737. I am expecting it to get relicensed, and probably quickly.

B.

Even knowing that AVO need to raise some further (not insignificant) funds, I think the current share price is bonkers low.

The markets right now are not good for technology related companies, which clearly isn't helping. Take a look at Checkout.com in the news today. Their valuation is down by 75% (29BN!!!) since February.

B.

I'm going to try and go.....
B.

Actually it’s the CPF that will get this back, and whilst SAR will contribute, it’s the CPF that will ultimately determine what to do with SRA737.

Disappointing news though. Whilst I expressed concerns this could happen, I was hoping that GSK would progress this.

B.

The latest Hardman & Co AVO update is out....

B.

I asked whether the within summer target remained and was told Yes. I didn't feel a want or need to start pushing for dates as to when summer would end. As, I can just google that if I want to.
Bill

Thank you for the kind words, Bennzil
Much appreciated.
Bill