Ann: Cynata Extends FUJIFILM Licence Option in GvHD, page-142

I did think an extension was likely given this went down to the wire, didn't think 6 months was going to be it but i guess it's better learning from Theresa May in Brexit negotiations i guess! Market was always likely to sell off if expectations weren't met, as they weren't, but all is not dead given our cash position and ability to push forward with other areas. GVH isn't a real big big fish in the grand scheme of things, asthma etc are now open slather which can go straight to P2 with other partners. That's the benefit of our model, we aren't tied to just 1 option, we have multiple avenues for revenue. There was no doubt a lot of selling today with people fed up or only in it for the short term gains we had in the lead up but it generated some good buying for others who probably took some off the table at 1.80 to de risk.

Plenty of scenarios playing out and i think a few people are on the money with saying we are standing our ground, maybe this is due to the same people being forced to sell CDI when they were vulnerable and know how these guys work...lets not forget Slukvin founded CDI and they had to get acquired, this time Slukvin is not in that vulnerable position. Ross's lack of wording seems strange, he probably has his hands tied with what he can let on by the sounds and as others have eluded to the Japanese are very particular and respect is a big thing for them so don't damage relations by demanding a late fee for an extension, it could cause bad blood. We have some good negotiators who have been in this position before so whilst Fuji have actually asked for the adjustments, we have simply said no dice. We have a low cash burn, have other options to progress so why show everyone else they can low ball and we will bend over. Given its our first commercial deal we need to keep a strong hand for potential future deals with others and show this is what it will cost you.

Given Fuji has been on the acquisition train they could have potentially come in with a takeover offer expecting management and Fidelity to say yes but again not dice. If this went on for some time and the option agreement wasn't in scope with Fuji they look to have made some last minute adjustments which favored them more then it currently did, expecting us to say yes. Ross has clearly stated this is for the GVH License Agreement, nothing more nothing less, this does show we are open to business on other aspects. We had a flurry of announcements completing trials that can now progress to P2 immediately, seems kind of a coincidence they all happened just before D Day arrived. What is clear is that Fuji have mentioned us many many times and that they will be progressing to P2 in GVH, this left us with an upper hand as we know they want to exercise the option and have indicated publicly they will. Bit of an egg on their face if they cant pay some chump change fees to progress in a world first trial...

In the short term will be interesting to see what is up the sleeves of management going forward, they would have known this could potentially happen so we could see something materialize elsewhere quite quickly with other prospects that have far bigger market slice.

I am not a Twitter person but assuming this will go up for CYP as an announcement, maybe someone could Tweet our good friend Rob Hariri to gather his thoughts on the situation!