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Message: What's the deal?

10BagR, I believe Don spelled out what will potentially take place going forward if we ignore Option #2 and #3. That leaves the more detailed Option #1.

"Option 1, Resverlogix will now finalize its ongoing negotiations with Major Pharmaceutical companies to determine a suitable partner for co-developing apabetalone. Co-development discussions include the following: ▪ Resverlogix will receive a significant upfront payment H2, 2020. ▪ The Phase 3b clinical trial will be funded by the partnering company - $120 to $150 MM USD. ▪ Our new partner can supply their SGLT2 diabetes drug as the co-medication. Thus providing the pharma partner with valuable marketing material and the ability to launch a fixed-dose combination product with patent coverage until 2040. ▪ The deal will also include substantial milestone and royalty payments with an M&A right of first refusal option"

I am paying attention to "M&A right of first refusal option".

To play it fair with our largest shareholder, Shenzhen Hepalink, I can see an "M&A right of first refusal option" play out between HL and a third-party equity BP partner. The third-party BP partner will provide the necessary funds for business operations and BOM2.

"Right of First Refusal (M&A Glossary)

Summary

This contractual right, also known as ROFR, gives an individual or an entity the option to participate in a business transaction before that opportunity is offered to a third party. Unlike a right of first offer (ROFO) or a right of first negotiation (ROFN), a ROFR requires a seller to actually offer the exact deal requested by an interested third party buyer to the holder of the ROFR – a very powerful option to have in M&A scenarios." (bolding added)

Shenzhen Hepalink will be given the option to participate.

 

IMO ... Koo

 

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