Hi Jerry de Boo. Merge, I think, is out of the question. The most likely scenario is either they sell the patent to a major Pharma for a "zillion dollars" or they are "hostiled" so quick that you won't have time to "adjust your balance sheet" for all the zero's it contains.
On the downside. The market defined in the Pyng web-site is $250,000,00 . Here's where MY unknown is!(Maybe somebody else can answer this) Is the market for intravenous devices $250mm, and this is the market they are invading? If so, then consider this. Out of all the intravenous "connections" that the "body" goes through, how many will be substituted by Pyng. My guess would be about 1/5 of the total. ie. traffic accidents/hurricane/floods/air crashes/ etc. etc.
Realistically, if you went into the hospital to have an operation to have a vasectomy/tubes tied (ouch!!/youch) you wouldn't expect some guy to stand on your chest and drive a needle into your sternum, would you?!! So this market would then be reduced to $50,000,000 (1/5 of 250)
So I patiently wait for the boys to get back to Pyng offices for them to answer this one!!
Lastly, what IS a reasonable share offer?? It all boils down to margins!
ie. Gold in the ground per ounce can vary from $15 to $120!! Why! Because some gold can be retrieved and processed for $70 other retrieval rates can exceed $285.
So, how much does it cost to produce this unit? How much does the fabrication facility cost? What are the operators margin on the product? (wholesale price "minus" total production price per unit) What is the size of the market ?
If you know the answers to all of the above questions, I can tell you within 10% what a good offer would be! Other people would probably like to guess. But, generally guessing gets you "deep into fantasy land"
the Chief |
