Belgiumboy wrote:
I strongly believe we'll soon get a positive news release with announcement of partnership, buyout or licencing deal
This is my argumentation :
Without fresh money and higher Market Cap, Kalytera simply can't afford the Acquisition of Stero. Why?
These are the conditions for the acquisition of Stero:
1)Kalytera is obliged to close a Private Placement of 10 million dollar prior to the voting of acquisition and RS (1st of May). This is simply impossible. Last PP was a few months ago and Kaly hardly raised 1,5 million dollars with a lot of effort. The situation for a PP is now, at least under the current circumstances, even more difficult than it was then. They will only be able to gather 10 million if the short term outlook improves dramatically and share price increases.
Bashers will say 'Mr David Bassa will basically fund the private placement'. He will not. From his perspective, funding a PP that causes immediate massive dillution on such scale (10 million dilution equals the current Market Cap) of his 'own' stock and shares is the worst investment ever, certainly because his investment would be subject to even higher dilution caused by payment of the acquisition in shares after closing.
There's no way to raise 10 million out of a PP without announcement of good news that improves financial perspectives. No closing of PP, no acquisition of Stero.
2)Second condition is : shareholders approval of a 100 : 1 Reverse Split. Kalytera has 80% retail investment, it's you and me, common and ordinary people invested in this stock. Nobody is going to vote pro on this subject. Kalytera needs to assemble the vast majority of votes amongst shareholder, which is only possible in case they give a good (= golden) reason to vote pro.
3)Third condition is : shareholders approval of the acquisition. Again, who among us is going to vote PRO if acquisition would only bring dilution? Again, we must be given a paid reason to vote pro.
Even though it's impossible to meet these 3 conditions under the current circumstances of low financials, Kalytera already releases the news of resignation of the board of directors.
On close of the acquisition, Mr. David Bassa, Chairman and CEO of Stero, will be appointed as Chairman and CEO of Kalytera, and Kalytera’s current board of directors will be replaced by directors to be named by Mr. Bassa. In anticipation of this, two of Kalytera’s current independent directors, Jeff Paley, M.D. and Mr. Robin Hutchison, have submitted their notices of resignation, and will be replaced by independent directors to be named by Mr. Bassa.
This tells me Kalytera must have strong reasons to believe the acquisition is going to be adopted for sure.
Because of all these reasons I believe Kalytera has found a golden egg that has not been released yet. The announcement of a partnership, buyout, licencing deal,... should follow soon since there's not much time left to fill in the private placement before the 1st of May. News should be out before the end of this month at the latest.
Always do your own DD