Re: Hold or fold?
in response to
by
posted on
Dec 17, 2020 03:40PM
There is, understandably, lots of frustration and emotion surrounding the notion as to whether or not a major deal is pending and an announcement to that effect. All we can do is go by what has transpired over the last few months. Two notable things are:
1) DM's verbal statements that discussions with a major partner(s) are going well and the suggestion that a deal that includes upfront payments may be forthcoming. RVX even went so far as to detail these comments on their website (see China forum).
If you have lost faith in DM's pronouncements or pontifications then there is this:
2) ORI's subsequent conversion of US$12M of debt to common shares in the company a few short weeks afterwards.
Now I know that I keep harping on point #2 but I cannot overstate how significant that is, especially coming on the heels of #1. Further, it is highly unlikely that something would have changed during the past month or two that would have caused ORI to regret that decision. I repeat, highly unlikely.
IMO there is now just too much going on with RVX for any major industry player to walk away from. Regardless of what the current SP is, it simply does not make sense to not see this through to a follow up P3 clinical trial. The long term potential, both medically and financially, is too great.
So, for what it's worth, put me down as someone that believes a major partnership deal is forthcoming and that the comments coming out of the AGM will continue to point in that direction. If a formal announcement comes this month, next month or 3-6 months from now then fine. Obviously the sooner the better.
A final point. All the company's creditors would rather be paid than not, and some assurances (however that might be conveyed) of a pending deal or some other mechanism will keep them at bay for a time.