Ultimately....if Resverlogix starts generating billions in revenue, it might all be academic....if that comes to pass then I would reasonably expect the PPS to be many multiples from where it is currently, even if they were paying 6 to 12 percent to Zenith....they'd still be keeping 94 to 88 percent.
I think you are right. "IF", and still a big long wait before we find out "IF" RVX generates a billion in revenues, RVX would keep $940,000,000 in revenues after the royalty. Using a conservative P/E of 12 times this translates into a share price of $94. ($940M X 12 / 120M fully diluted RVX shares).
I suppose I won't care about the Royalty that much at that point. I just don't like the conflict of interest situation that clearly exists here and the potential breach of fiduciary duty to RVX shareholders.
Like I said before, if they can be so bold as to propose further Zenith looting of RVX revenues then what is to stop them from continualy and sytematically amending the agreement more and more in Zenith's favor? I really don't like the smell of this.
