Great news, great news. In reality it was already clear to all our legal adversaries that they weren't going to win on the merits. The last critical part was making it clear to our legal adversaries that they also weren't going to be able to 'run out the clock' by delaying until our cash dwindled to critical levels. Issuance of the preferred ended that strategy.
And now it will be an avalanche breakdown. If you're the last to settle, you have the least leverage in settlement negotiations. So now they'll rush to settle or get crushed. Or rush to settle and get crushed. Either way, super good news for FNJN.
This is going to be a perfect opportunity for FNJN management to let their Investor Relations skills shine. Right now the stock has tremendous positive momentum...
And the best of the good news isn't even known to the broader markets!
If FNJN play their IR cards correctly, all the upcoming positive catalysts are really going to touch this thing off. It's going to be a great ride! Imagine where this stock goes when it becomes obvious that about a buck a share (or more) in settlements are locked in. It means more than a buck a share to the value of the stock because this is just the first of several cases.
I hope so! Consider they have a pipeline of low-risk drugs representing $1.4 Billion in TAM as of January 2016. Consider that pipeline currently have no, one, or two existing manufacturers. When that pipeline is realized TLGT will be generating $250MM plus current ~$40MM of annual revenue.
So that will make us worth $1.0 Billion. And what will our pipeline look like at that time? More robust than it is today, bet on it. Let's hope we're at least comparable to that 3x number! Ha. But I think we'll be better...and to give you an inkling of why I'll leave you with the last three year's revenue trajectory:
That's a $24MM TAM. TLGT go after products that have one or two producers and typically expect to get their fair share of the market. So we're talking about 15% to 18% of TTM revenue right there.
Remember when ANDA SUBMISSIONS were newsworthy? Now they're just kind of 'ho-hum, we do that all the time'. Right now TLGT is at the stage when ANDA APPROVALS are newsworthy...but this company is quickly moving to another phase when ANDA approvals will be very common for the company.
And then the revenue pipeline is going to be very robust!
FNJN almost certainly shopped good news to preferred stock investors first. You know, on an 'LTIP' basis. Once that transaction is closed that news will be released to the general public.
Don't know if we'll hear anything by 16may...seems a little soon...but we'll hear something.
LTIP=Let's Talk In Person
It's all very good. The one unstated uncertainty about this stock has been removed. Nobody can now say they will be forced to settle because they ran out of cash. There is more than enough cash to wait out the entire litigation process.
In fact, it's exponentially good because not only is it a boon to stock sentiment, but it gives the company MUCH more leverage when negotiating with all parties that are violating our patents..
That's my interpretation as well. FNJN are very, very confident they will get more than 50% of the judgement.
Also, recovery on or before the anniversary of the closing of the preferred. Or at least they are confident it can happen by then.
Finjan will issue 102,000 shares of Series A Preferred Stock at a price of $100 per share to Halcyon LDRII in this transaction, __a non-dilutive financing__ for common shareholders of Finjan.
The Series A Preferred Stock contains certain optional and mandatory redemptive provisions, does not accrue an annual cash dividend, and __carries participation rights in certain of the Company’s revenue streams__ until securities are retired.
This must be a new definition of 'dilutive'! ;-)
Whatever. This is good news. Finjan management shopped non-released good news regarding litigation to Halcyon. Halcyon threw $10MM Finjan's way. Now Finjan will tell the rest of us the good news. Halcyon will profit.
“Negative Litigation Event” means the occurrence of any of the following: (a) any subsequent decision (after the Date of Issuance) by the United States Court of Appeals for the Federal Circuit or the District Court for the Northern District of California that has the effect of setting the damages amount owed to the Corporation or the Corporation Subsidiaries by Blue Coat Systems Inc. in Case No. 5:13-cv-03999-BLF (N.D. Cal) at fifty percent (50%) or less of the damages awarded on August 4, 2015 (the “Awarded Damages”), or (b) the decision of any Governmental Entity materially affecting the ability of the Corporation or the Corporation Subsidiaries to collect more than fifty percent (50%) of the Awarded Damages from Blue Coat Systems, Inc., as reasonably determined in good faith by holders of more than fifty percent (50%) of the Shares or (c) Blue Coat Systems, Inc. (or any successor thereto) experiences a material adverse change in its financial condition which in the reasonable good faith judgment of the Purchaser would reasonably be expected to cause them to be unable to pay the Corporation at least at least fifty percent (50%) of the Awarded Damages.
If geismar is going to run consistently at capacity we should all go long industrial pumps and cobalt.
You know what a sooner IS, right?