I addressed the reasons why obtaining the $5 million in financing was a BRILLIANT stroke by REFR management. Among them:
1. It is easiest to ge $$$$$$$ when you do not need it; REFR really did not need it.
2. Will put them in a very STRONG negotiating position with potenial licensees and other possible strategic partners.
3. Allowed them to meet a key requirement to be on National Nasdaq.
4. The institutional "heavies" who financed the $5 million will be useful as contacts, references and windows to segments of the financial community.
5. You never know when or why the aditional $$$ will come in handy..perhaps they could purchase a company making a key chemical or component of the SPD film, etc. , etc.
6. The awesome Due Diligence that REFR underwent and passed with FLYING COLORS indicates that the company is FOR REAL and management is HONEST.
I just studied a transcript of the Internet Conference. Much of it reinforced what I already knew/suspected. But I was especially
awed by two points made by Mr. Harary...they are awesome, namely:
1. No matter how high sales of products using SPD technology go, REFR's costs will remain fixed, since the licensees will be th ones producing product. REFR will just be collecting royalties.
2. REFR was/is/able to make such great RD progress in refining, improving and extending the SPD film with only a staff of 12 because the REFR scientists collaborate closely with the scientists employed by the licensees and with companies that may buy the film to incorporate into their products. This constitutes a fantastic LEVERAGING of REFR's R/D capabilities. Too, it is in the BEST INTERESTS of the licensees to collaborate with REFR's RD team. It is a WIN- WIN situation for ALL concerned. Also, REFR utilizes independent consultants(like the group in London) which is a way to further enhance their RD.
I believe that Mr. Saxe's strategy, gameplan and approach is BRILLIANT. Having said this, I realize that unless the SPD technology holds up well in "real" environments, all will be lost...But the probability that it will is moderate to high.
Incidentally, I'm very impressed with the high quality posts on this thread.
Back to leveraging of RD: Just think, the more licensees REFR obtains the more they will have access to the "brains" of those licensee's scientists who will work with REFR's scientists to refine, improve and extend SPD applications. Moreover, Bob Saxe, in his infinite wisdom,
functioned as a catalyst to cause scientists from the different licensees (Hankuk, MSC) to COOPERATE & COLLABORATE with one another resulting in a further LEVERAGING AND ENHANCEMENT of RD!!!! Saxe's idea has resulted in a positive, constructive MUTUALLY BENEFICIAL cycle that will be deliciously FEEDING ITSELF TO THE BENFIT OF ALL CONCERNED! |
