Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Nortran Pharmaceutical -NRT.V -- Ignore unavailable to you. Want to Upgrade?

To: Jon Smith who wrote (341)	4/1/1998 3:14:00 PM
From: Paul S.	Read Replies (1) \| Respond to of 1185

The VSE trading system has been down since this morning, all reports say that it will not resume until tomorrow.

To: Jon Smith who wrote (341)	4/1/1998 3:38:00 PM
From: F. Jay Abella, III	Read Replies (2) \| Respond to of 1185

Paul: Expert opinion? I'm flattered. I can comment on the "news" from yesterday which says the company is in negotiations for a deal. Here is what I like, in order of preference, when a biotech does a deal. Keep in mind we have no idea as to what compound(s) or what application - the AAA pipeline has several of each. 1) UP FRONT PAYMENT 2) UP FRONT PAYMENT (worth stating twice) 3) Equity accumulation of shares on the open market a la CCM (no dilution) up to, but not to exceed, 20% of the company 4) Transfer of long term ww development costs from NRT to collaborator or formation of a joint venture into which R&D money is paid yearly. 5) Out of the money warrants for more equity a la CCM. (I'm less enthusiastic about an out of the money convert) 6) Milestone payments for all drugs in all geographic locations 7) Royalty revenues of not less than 10% per product or at least 50% profit share in a joint venture 8) Board seat for collaborator I realize these are ambitious but the closer NRT gets to these things, the better the market will view the deal. W/R/T up front payment - a $20mm cdn upfront deal would add $0.65 in cash to the company and spark another $1.6mm infusion of cash into NRT from CCM warrants (assuming full dilution). This to me adds another $0.70 to the $2.00 stock price immediately, with more windfall from discounted flows from milestones and royalties at whatever price the market will bear. I will repeat!!! - what we have seen to date is nothing more than the stock finally going where it should have been for the last year. I put a price tag on the shares at $2.16 in December 1997, and predicted on Jan 8, 1998 that NRT would at least double (from $1.06) in 1998. See my valuation for NRT here: westergaard.com:8080/Med/Valuation/valnort9747.htm For what its worth. FJA PS - I would like to see how all this breaks down when and if a press release is forthcoming. That way, everyone is fully informed and the VSE can rest easy that NRT is nothing more than a great company.