TELESTA THERAPEUTICS INC T.TST

If you worked at the OSC, what would you do?

[RetailRube]

Suppose you worked at the OSC and you received a prospectus to approve.  Here are the facts you are looking at:

• July 21:  A Director (Gubitz) sells almost all of his shares at 36-37 cents
• Aug 21:  Bioniche halts the stock to announce the next day a 23 cent/unit offering
• The 1/2 warrant in the unit expires in 5 years which makes it almost a perpetual warrant.  The company has previously issued warrants expiring in 2 years.
• The preliminary prospectus does not seem to disclose what the warrant is worth according the Black-Scholes option pricing model.  So it is not evident to the reader what the embedded share in the unit is being priced at.

What would you recommend to your boss?

Will your boss ask you what the Securities Act and National Instruments say about issuing shares 31 days after an insider sells?  Are there any rules saying you must issue for a share price of at least 36 cents because of the director's sale?  Does waiting 31 days extinguish this requirement?  Why didn't they halt at 29 days?  If it's not in the Securities Act, does the OSC have any undocumented policies on these issues?

Aren't you glad you don't work at the OSC?  (If you do, you probably shouldn't be posting to this board.)

[blartar]

THANK YOU! THANK YOU! THANK YOU Rube. You have spelled it out 100% correctly again. Do you think we are still dealing with a band of thieves?? GLTAL PS I hope some employee of the OSC reads this blog.

[IoftheLynchMob]

Like you, I am very confident that this financing is fair for all involved and reflective of their clearly stated goal of providing both short and long term value for all stakeholders. I am equally confident that this same level of honesty, fairness, transparency and foresight will be integral in their ongoing interface with the FDA. There is no historical pattern to suggest otherwise. Did I

[beechguy]

Lynchmob, I generally like your sarcastic wit. Just tread lightly when it comes to insinuating deceit regarding Bioniche and the FDA. Using "I'm a smart a$$" as a defense, won't help you in court:)) beech

[ragingbull1327]

I would leave it up to a computer programmed by someone far smarter than anyone working at the OSC.  If I couldn't do that, if revert to common sense instead of institutional bullchit