Re: ".. rather DL & BOD come together and sell the MMP to a big company"
in response to
by
posted on
Jan 27, 2014 06:54PM
OK, but what do you think that big company would pay right now ?
There are two Patent owners, with two very different strategies, and both under financial pressure.
PTSC is an ugly capitalized corporation with leadership having a very poor record of business judgment.
TPL is in BK and using delaying tactics, with Alliasence having contractually tied up the MMP.
There are only 18 months left of Patent protection, and then a short 6 year lookback.
Best I recall, we have been getting one one thousandth of a penny per revenue dollar generated from a finished product for Licensee royalties.
Back of the envelope calculations
Lets say .... If you generously figure there is still $500,000,000 left in fees that is collectable (this is far more than DL or CM even dare say is likely), and you take a total of just 35% off as the negotiation/overhead/enforcement costs (that's probably low because Alliasence's fees alone are 20%), total additional MMP licensing equals $325,000,000 net.
Split $325,000,000 in half (half to TPL and PTSC), that leaves PTSC with $162,000,000.
Divide $162,000,000 by 405,000,000 shares, and you get a per share value of 41 cents.
An acquiring company will ONLY buy at a discount (for the above reasons and more), so .. maybe they'd offer us 25 cents ? 28 cents ? 32 cents 35 cents ?
Are you ready to sell for that ?
If not, and you still want a buyout, the only way to increase that value number for PTSC shareholders, is to reduce the company's outstanding share count; and they ought to do it with traditional debt, now, while the MMPs future is so unpredictable and the costs for us to acquire company stock is within reach and doable.
FWIW, that's my opinion anyway