corp et alI have to say that I share some of the same frustrations as you. One thing I never like in business or otherwise is being jerked around. And this was a big one. To stand up and talk about future financing but not at this level, and joke how this company is not for sale for 3, 4 or 5 bucks....but maybe 20 and then turn around and sell a quarter of the company for $1.50 only 2 weeks later is pretty insulting.
Maybe there are very good reasons, maybe this is not a gift to Graham's relatives in Oz, maybe this is not a payoff for Dundee for analyst coverage, maybe this is'n a payoff to National and Northland for keeping the share price down and enriching the employee share purchase plan.
But the optics are terrible. Straight faced lie to the shareholders. What the f@ck is that? Is Graham not CEO enough to tell 100 people in a room why this is a good move now? Does he not care that it makes this deal smell rotten as a result?
Let me try to help:
Dear Shareholders
Some of you have been here a long time and seen the ups and downs of this company. Our future has never brighter but we are at the stage that we need to be ready with enough resources to bring our two major products to market. With Urocidin, ENDO is building their business around it, as such they are very conservative with their plans. We don't think that they will be releasing their Phase3 data until the big conference in March. At most we can expect a milestone payment or two which will not be enough, especially if Urocidin is fast tracked and we need to have a plant ready in 2012. We don't want to be beholden to ENDO's marketing plans while we make ours. This 30 mill will guarantee that they treat us differently. As far Econiche is concerned it is becoming a global play and we are up against the last hurdle for full approval in the US. A US based field test is required which will need funding. We have a great partnership in Australia that would benefit from an Australian listing. And gentlemen, I have a third ace up my sleeve: horses.
I could have lived with that. We had 10 million and short of another market meltdown, I think we could have had enough money and time to get us into a better financing deal as ENDO moved along. However I am not privy to what Bioniche knows, so I try to imagine why?
Two things stand out: Bioniche knows the Phase3 results and at first glance it would seem that they're not that great hence the deal for cash while you still can. But I think that is wrong. I think ENDO is planning a March meeting where everyone will be walking away mentioning Urocidin. They know BNC is low on cash, they have til March to make an offer. We just became a lot more expensive. Also, who here thinks that Dundee doesn't know the same results before they shell out 10's of millions?
I have waited a long time and bought lots in the dark days. March is an easy wait to see where we stand. As such I am pissed for being treated like a schmuck but think the deal is a large insurance towards a slightly smaller golden goose.
BTW McRae now drives a Lexus