I can't help but conclude that the timing of the new loan, particularly on such onerous terms, indicates that either the injectables sale/product licensing is going to be at the lower end of expectations in terms of up front cash generation or that SKP are not confident it will complete.
If the former the market should not react too badly if the latter gawd help us.
Also when SKP took the decision to develop Fluti itself and raised the funds to do so by Rights Issue, I made the point that as a result, its investment risk profile was significantly adversely affected.
I am stating the obvious that the new loan to fund the substantial increase in development costs has exactly the same effect.
This is highly significant when considering the extent of the potential recovery level of the sp.
Imo it cannot be to the prices seen pre Rights Issue until post Fluti regulatory approval ie 2009 earliest unless they pull a rabbit out of the hat or the market goes crazy.
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