RE:RE:RE:RE:RE:Only a corporate suit could call this merger a synergy..."Hummmmmm,,,,,,the deal tells us 6%,,POF,,,,,,,6,,,six percent is the deal for us ,,"
narmac, I don't know a reasonable world in which BTI shareholders should not be responsible for BTI's own outstanding warrants, options, debt to Lind, and debt to Ladenberg Thalmann? Accounting for these obligations BTI gets ~23% of fully diluted Biodexa. Together Midatech and BTI receive ~33% of the fully diluted company and Armistice Capital receives about 67% of the company for US$20 million in cash and near term expected cash.
25% of biotech has traded below the value of cash on the balance sheet in recent months due to multi-decade high inflation. BTI was leveraged into the historic bear market in biotech and xB3 still may be two years from a clinical trial and longer to decisive data. Raising cash to pay off BTI's debt, provide a cash runway to key catalysts, and to pay for Ladenberg Thalmann to help put a deal together at this time is very expansive. Biotech companies have just been trying to survive.
The market has picked up somewhat since the deal was put together and Midatech's CEO said he could have put together an alternative financing. Perhaps there is a deal now without the second warrant which could save significant dilution but it needs to be priced to clear enough cash to provide a runway to hard data. If Biodexa is also in a state of financial emergency because it doesn't have a solid cash posiiton to key catalysts the market may avoid it like its avoid BTI given its permanent financial emergency. Generally a two year cash runway and no debt is the gold standard in biotech.