Re: Try 2 - Contract Terms
posted on
Apr 23, 2007 12:52AM
Mark,
You ask for thoughts...
Well, I think that for a company whose leader is an attorney, the agreement is pretty loosely written. (Of course, that could have been the intent.)
Your interpretation could be true. Or, perhaps no action at all is required in terms of sales between now and December. As outsiders it is tough to know for sure.
I really don't know that the document included in the 8k should even be referred to as a formal contract. A contract is an agreement that is enforceable by law. There are conditions in the agreement that concern marketing rights, which when product sales begin, will be bound by the agreement. In fact, there is really no downside at all for AHD in this agreement. For the agreement to state: "Failure by AHD to purchase the Minimum Amounts shall not constitute a breach of this Agreement by AHD, but it shall terminate and exclusivity within the Deficit Country."
And, as stated in the agreement, purchase orders will define the actual orders for the product (not the agreement).
The bottom line looks to be this.... the only consequence to AHD should they not sell the minimum amount of product is that they lose exclusivity. Period. They haven't agreed to buy ONE kilo of this product yet. Nor have the agreed upon any price that can be confirmed.
The terms of the agreement are favorable to only one party... AHD. And if you don't think that statement is the truth, try taking an agreement with those terms to a bank as collateral for a business loan. It won't happen.
The product may very well have health benefits. But, the concern that a few of us longs have is with the commercial side of the business. It seems like things have always been this way with Vyta or Nanopierce... 98% of the details look promising, but, the 2% that are omitted are critical to making the deals commercially successful.
For speculation, there may be enough information in the agreement to get people excited about throwing money at this venture. However, from an investment perspective, critical details are missing. Until those details are provided, this (in my opinion) is still a highly speculative investment.
You can criticize me and other posters for our opinions. That is your right. For some of us, though, it is hard to understand why others haven't learned from past experience with this same company. The same types of omissions have been problems in the past. We trusted what we read, or what we were told, only to be profoundly disappointed.
This board can be a place for all types of discussion. As long as we are respectful of one another there are really no rules. I believe that everyone is responsible for interpretting the information presented from their own perspective. For some of us, reading between the lines isn't a good enough reason to invest. We need documented facts. Significant facts are still missing from the AHD / Bioagra deal... at least for those who make investment decisions using the most important information.
All my personal opinion.
Jeff