Stop Gap What this deal shows us is that our CEO and BoD are either not up to the task of finding a suitable deal, that they decided to take a deal (not the best necessarily) that could be used to leverage their position (warrants, equity stake) or that Urocidin as an asset is not as valuable as we have been led to believe and it is essentially worth 1.5% of 22million (the loan reduction amount).
Of course the press release was lacking in detail and proves yet again that the overlords in Belleville have less than contempt for individual shareholders.....that said...
1) If our mgmt team is not capable of finding the best deal amongst the 30s of them that existed....they should be fired. If this was the best deal, then they still should be fired given the current state of things.
2) If our mgmt team selected the deal that serves their selfish purposes best (ie. more equity to a friendly party making it more difficult for parties to drive change).....then they should absolutely be fired and a lawsuit be started.
3) If this is the best that Urocidin can get us....and they know this....and they still plough blindly ahead with the sale of AH to fund what Paladin has essentially confirmed as a crapshoot.....then they should be fired. Under no circumstances should this mgmt team be allowed to sell our only money making business, (one on the cusp of pretty significant things and one that still has a number of items in the pipeline) to fund McRae's egomania of bringing a cancer therapy to market when no other party believes it to be viable (yet). Incidentally, if anyone believes that the Mexican and South African markets are right around the corner for us....think again.....SA alone opening admits that their drug review backlog can push reviews of novel therapies from 24 months to ummm whenever...and that assumes we have the data package required as we speak (but of course who knows). I don't understand why those fringe markets (apart from Canada) were selected....but I don't believe it to be because those markets will accept our NOC/c from Health Canada (although I'd love to be proven wrong).
McRae has been claimed by many as a visionary.....perhaps...but not a successful one (seen the movie Tucker?). McRae had a vision for our company being the sole supplier of an Ecoli vaccine that the world desperately needs and purpose-built a vaccine plant indebting us to the tune of tens of millions, and further costing us more millions in overhead. This vision has gone and is going nowehere. That data point alone makes me conclude that Mr. McRae is not the one to decide on the future of my company and my investment. So he will decide to sell AH to fund Urocidin? How well has the bet called Econiche worked out?
Our company right now is made up of a sure thing (AH) and a possible rising star (Human Health)......what McRae is proposing (and what has now been baked into this debt refinancing) is that BNC will sell it's only moneymaking asset on the hope that McRae can get Urocidin to the finish line. While I believe in Urocidin, I do not believe in McRae. What he is doing is selling our home and going to the track with the proceeds. That generally does not end well.
This Paladin announcement will only feed the GW fire further. Nothing in this announcement was anywhere near what existing shareholders expected nor was led to believe was imminent. Shareprice static.