FactorX,If the spin out does not raise the necessary funding to...

FactorX,

If the spin out does not raise the necessary funding to complete the fitout, it seems to defeat the purpose of going through the process. One cannot use half or three quarters of a plant. I think the terms, ‘spin out’ and ‘IPO’ are used interchangeably. The ann also specifically states, "All of the funds raised, excluding costs, will be retained by PrIME Biologics." This is not inconsistent with your quotation, "More importantly, post the spin out, NuSep will no longer incur any expenditure associated with PrIME Biologics". After the spin out the relationship will be just supplier/ client, and therefore there will be no further costs to NSP.

However, I do understand your thinking. In the usual way of spin outs the moneys received would normally go to the parent company. In this case NSP shareholders are rewarded by direct holdings in the new company.

Juke