Bioasis Technologies Inc. V.BTI

The Play Is for xB3

[Boomskid]

This a follow-up in support of emmitfitzhume's excellent post. We're on the same page.

 

Also, zwerp2000, I admire your fight but it's not possible to support your statement that there is no value to xB3. The deal is all about xB3. The things that the Midatech CEO is pumping are all xB3-related programs.

 

If there was no value to xB3 then this deal would never have been pursued with such effort over the last 18 months by such big players as Lind, Ladenburg Thalmann and Stephen Boyd of Armistice (LT & The Placee). 

 

More importantly, there is nothing about Bioasis that is worth much of anything in comparison to the potential value of xB3. 

 

I believe that Cresence and Midatech are just tools being employed by Dr. Deborah Rathjen and LT & The Placee. By the deal's own revelation, the Cresence intellectual property will be worth what Bioasis paid for it, 5,733,337 shares, or just 0.6% of Biodexa. It's almost worthless in the deal.

 

As a tool, I think it possible that the Cresence EGF intellectual property was obtained and used by Bioasis to give the company something to tout that would take investors and shareholders' eyes off the real target in the deal, xB3. It also allowed Bioasis to call itself a "clinical stage" company. And it allowed Bioasis, possibly at the urging of LT & The Placee, to remove almost all emphasis on xB3.

 

Midatech was also chosen because it is of low value, its need to retain its NASDAQ listing, and that its value could be increased by the Bioasis deals, mostly unresolved, and some minor xB3 licences to advance its in-house technologies. There is room for Midatech/Biodexa to "accrete." 

 

I say minor stuff because Biodexa will end up with xB3-EGF, xB3-Q-Sphera, Hunter syndrome and some other minor stuff, the value of most of which will depend on xB3. To that degree, xB3 is being pumped. Biodexa may never get a sniff of the larger xB3 projects, oncology and neurodegenerative diseases, unless it's in the form of upfront payments and royalties on licensing deals. But DrDR never got any serious money out of any deals, not by the measurement of the Chiesi, Neuramedy and Prothena deals. Those aren't bad precedents if Biodexa ends up needing to justify a cheap deal for anything relating to xB3.

 

Granted, it's also possible that LT & The Placee intend to make a play with Biodexa and will leave xB3 ownership with the company. Even if absolute control of Biodexa is not immediately exercisable, they can get absolute control over it whenever they want. 

 

It think it's also possible that Lind worked in concert with LT & The Placee, first to keep Bioasis funded while the deals were done, which was needed. Secondly, or maybe primarily, Lind created a fail-safe deal closer for the team, the immediate foreclosure on Bioasis debt if Bioasis shareholders rejected the deal, leaving Lind in possession of all Bioasis intellectual property. As a result, I think it's corporate suicide for Bioasis shareholders to turn down the deal.

 

Midatech's CEO, Stephen Stamp, is pumping the Midatech programs, the Cresence EGF programs, the Chiesi and other deals, and Hunter syndrome, laughably being touted as Bioasis's lead program. All of the touting is based on success of xB3. The deal is all about xB3. And yet promotion of the value of xB3 with oncology and neurodegenerative diseases has been almost eliminated for months. 

 

The pumping of xB3 by Stephen Stamp but not by Dr. Deborah Rathjen reminds me of the poem, "Phyllida And Corydon," where "He would love, and she would not" and with an ending like that in the poem, "And Phyllida, with garlands gay, Was made the lady of the May."

 

But I suspect it's all legal. It will all go down to either the ineptness of Dr. Deborah Rathjen, both in the operation of Bioasis and the negotiation of this deal, or that she helped set up the deal with the interests of herself and others, not of Bioasis shareholders, being preeminent. 

 

Voting no to the deal will likely result in the loss of the Bioasis assets. 

 

Calling in regulators could cause the players to withdraw, leaving Bioasis to default on its loans and for Lind to acquire the IP, anyway, and free to sell it to anybody. 

 

It's over.

 

Go with it. See if The Players will allow you to have a win with Biodexa, which could happen even if somebody other than Biodexa owns the xB3 Platform.

 

And  if I take action against Bioasis for non-payment, perhaps even for fraud, and also go to regulators, or if you go to regulators, would the players pull out, leaving Lind free to foreclose and Bioasis shareholders with nothing, and me with nothing?

 

It's all about xB3, folks, and I think they will get it, no matter what. You can only make it worse by arguing. Thank you, Dr. Deborah Rathjen. 

 

JD Boomskid

 

 

P.S. Gotta love those prefunded warrants that Armistice bought. Biodexa gets the money but the warrants will remain unexercised so that Boyd/Armistice won't have a control position in Biodexa, more than 9.9% of its voting shares. I wonder how those warrants will eventually be played. 

 

[zwerp2000]

Sorry, JD. I just don't see any value to XB3. Bigger companies had every opportunity to make a deal or buy the company out over the years and they chose not to. Nothing ever move forward into the clinic after all of these years. In the end, the company sold out for peanuts which tells me they had nothing. If there was truly any significant value to xb3 and this is the deal they chose, then i

[Boomskid]

Why are these big players, including a billionaire, buying Bioasis, zwerp2000? If xB3 has no value, then Cresence EGF is all that is left, so why would they go through all these machinations to get EGF?.  LT and the players could have bought Cresence without bothering with Bioasis. It was likley LT who who set up the Cresence deal, probably as a tactic to remove the focus on xB3. They didn&

[zwerp2000]

If that is the case, and i still don't believe it, then management needs to be invesigated 

[emmitfitzhume]

  Excellent points John.  So many questions, so little transparency and flat out false guidance.  This deal is the exact opposite of value accretive and non dilutive for shareholders. The only benefactors of this fire sale are the financiers and Dr Rathjen.   Where did XB3-001 go? Why can't a non-brokered private placement be done if there were interested parties?

[zwerp2000]

If this is true and there is the appearance of malfeasance and a breach of fiduciary duties by the CEO and others in management, then they need to be held accountable. Too bad Dr Rath seems to be too chicken to explain herself and provide shareholders with any rationale to a seemingly horrific deal. The problem though is who will bring an action against her/the company and lead the investigation

[narmac]

,,,,and,,why couldnt we go into a cryogenic freeze for 6-12 months or until we accomplish something or one of the partners does,,,maybe raise enuff cash to wait for data,,,,,,or marry into another Biotech where the technology is respected and fairness is with both entities,,,,,surely a negotiator can create a win win situation out there with an interested party!!,,when market media tell us major

[G1945V]

I wonder what the former CEOs, Mark Day and Rob Hutchinson think and feel about all of what's happening right now.  They still own BTI Common Shares and Options. G1945V

[prophetoffactz]

Rathjen has done what should have been done a long, long time ago. It's too bad it took so long and happened during the worst biotech market in history but with potentially $20 million cash and in a much stronger company xB3 has never been in a stronger position to advance internally. With Chiesi and J&J Rathjen may have also put xB3 in strong hands. Sometimes it takes a woman to make the

[beenthere]

As you are aware I have mostly supported you in the past but not this time! You have become a big parrot! After telling us about 30 times that " it's the worst biotech market in history" we get! For sure I get it! Please stop repeating yourself!! We also GET IT that you think everything is just grand! Why not talk more about how much of this new company BTI investors are getting?

[KayakerBC]

Rathjen has done what should have been done a long, long time ago. It's too bad it took so long and happened during the worst biotech market in history but with potentially $20 million cash and in a much stronger company xB3 has never been in a stronger position to advance internally. With Chiesi and J&J Rathjen may have also put xB3 in strong hands. Sometimes it takes a woman to make the

[Boomskid]

Hah! prophetofthepast says, "Rathjen has done what should have been done a long, long time ago." Rathjen gave up years ago, first with the Prothena deal, over four years ago. The Chiesi deal cemented her legacy of incompetence.  Imagine! She sold four LSDs to Chiesi and the rights to more for $3 million and then has the temerity to pump Hunter sysndrome as Bioasis's top