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Liminal BioSciences Inc. PFSCF


Primary Symbol: LMNL

Liminal BioSciences is a biopharmaceutical company focused on the discovery and development of novel, small molecule drug candidates for the treatment of patients suffering from fibrotic or inflammatory diseases that have a high unmet medical need. Liminal BioSciences operates on an integrated basis from our talent hubs in Laval, Quebec, Canada, and Cambridge, UK. Our common shares are listed for trading on the Nasdaq Global Market.


NDAQ:LMNL - Post by User

Bullboard Posts
Comment by bplondonon Oct 30, 2018 9:21pm
246 Views
Post# 28898578

RE:RE:RE:RE:Information void due to dire situation

RE:RE:RE:RE:Information void due to dire situation
Gunner:

I could certainly be wrong but your thesis does not make much sense to me and perhaps you could elaborate on why it does to you.

Thomvest already held all the collateral before the extension of the credit to 2024. They are now in a position where they will have to wait until 2024 for repayment either partially or in full when they could either have taken full control of the IP in '19 with no risk if it indeed has value or written off their investment between now and then as a bad one. Even collecting 10% a year leaves them potentially flushing half their principal down the toilet between now and '24 if the company goes under and is worthless.

So one of two things now happens: Thomvest either extends further credit and foots the bill (while increasing their position in the company) to keep things going or PLI does a deal to generate funds to keep things going. In either scenario it would appear to me that Thomvest has (with the extension), or is about to even more dramatically, with further funding, indicated a vote of confidence with the recently announced extension.

Seems to me that regardless of what the market's short term view is (the stock could go down and the stock could go up-certainly PLI could have managed things much better over the past few years and their execution has been poor-nobody is denying that) the fact that Thomvest has extended to 2024 is an extreme positive, not a negative, and that Thomvest is viewing this a long term investment with a positive return at the end.

I have to admit that as a longer term shareholder I was disappointed that the last round of warrants allotted to Thomvest expiring in 2024 (there are quite a few of them, at a strike price of around $4.50 I believe) was disappointing to me in terms of the timeline,and it certainly suggested that Thomvest was being conservative in terms of shareholder value being realized.

But IMO the extension certainly indicates that they want to continue with their investment and see much more than the collection of interest as their objective and quite likely.



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