RE: Come on AR5 Feb 2022 14:22
I feel the same way Thompi. I too have lost a huge amount here, as things stand.
When Blackwell first announced the Oxilio deal I thought it might be a shrewd one where Nuformix would be offered a heavier reward upfront but less on royalties later as a reflection of the fact that Oxilio had taken a greater risk early on. That would have been more than fair considering their target market is worth billions. The reason I thought that might be have been shrewd was because we clearly needed a decent chunk of money immediately to move NXP002 and NXP004 forward (over 3m, as it turns out). I therefore thought the 'significant' upfront payments (as they were initially described) would be in their millions. What we got were 2 payments of £25k. That's nothing more than petty cash when you realise that since Blackwell first announced that deal via RNS we have undergone 3 placings for over £3.8m total.
It's difficult to see how this deal has been beneficial to Nuformix shareholders. It didn't raise enough capital to secure a future where we might enjoy what little royalties we could expect. We had to undergo further placings and dilution just to get where we are today.
Why did they not negotiate upfront payments that would have negated these placings? Was there a real risk that, without those placings, we could have gone bust? What happens to NXP001 IP if we do go bust? Who owns NXP001 in that situation? Who gets the milestone payments or even the royalties in that scenario? Is there a clause in the terms that passes the IP to Oxilio or someone else if Nuformix goes under? Does it pass to the inventors? I don't know.
The viability of the technology should have been a side-effect of a deal, never the goal. There's not much point proving the viability of a technology if it looks like you might not have enough money in the coffers to hang around much longer to benefit from it. Why should Oxilio have a future when we might not?
None of this will matter if NXP004 or NXP002 garner interest from big pharma and we get our money back but right now that doesn't feel very close. It's what happens if they don't that bothers me because it might be the end for us but will it really be the end for NXP002 and NXP004?
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