Letter to Graeme Hi, Graeme,
In the recent NR, it states: "The reorganization involves moving the Company's Human Health business into a new wholly-owned private subsidiary - Bioniche Therapeutics Corp. . The subsidiary will function as a standalone unit,..."
Please clarify the following questions:
1. What do you mean by "wholly-owned private"?
2. Since BNC is a public company, does that mean that shareholders will no longer have any share interest in the new subsidiary?
3. Since the MCC platform and the human health division was part of what the shareholders purchase when they bought the BNC shares, they legitimately has the owning right to the intellectual properties and all that is related to this human health division. If this division is removed from the BNC holding and become "standalone", how are the shareholders compensated for the relinquishing of such assets?
4. If the new subsidiary remains as part of the BNC assets, how could it be "private"? How can the shareholders continue to benefit from the success of this subsidiary?
5. At the present share price, how do you plan to assign a $ value to the human health assets?
As you know, most of us the shareholders bought into BNC mainly because we appreciate the future potential of the MCC platform and Urocidin. For some of us, it is the very reason for owning BNC shares. Many of us has long suffered the pain of seeing the significant loss of our investment due to the various obstacles BNC has encountered. A lot of us has remained loyal and supportive to the company and hopeful of its eventual success. It would be extremely unjust to now suddenly have the very assets and its potential reward snatched away from us for a unreasonable low compensatory amount based on the current under-valued share price. Therefore, it is a great concern for us. I hope you and your advisers will not abandon the shareholders and devise a plan to include us in the share of future rewards of the human health division.
I am eagerly looking forward to your reply. I hope you have a fair and equitable way to include us in the ownership and success of the Bioniche Therapeutic Corp.
Sincerely,
Dr. XXXXXX