RE: RE: Number of shares
The problem is that Victhom was still in development stage and in burning cash position for at least 2-3 more years. They already had $18M debt and were unable to get financing.
Canada had 2 breakthrough worldwide technologies and prefered bailing out GM than keep unique technologies in Canada. Our political system is really screwed up. Therefor Victhom pretty much sold its 2 technologies to Ossur and Ottobock in order to survive. They completly lost control of their technologies and are in the goodwill of their partners.
Ottobock at this point has a contract to spend $30M over the next few years for the Neuromodulation division. That should keep Victhom progress and hopefully within commercial stage were they will be making money in order to pay for the new developments.
The Ossur contract is much more limiting and can really hurt Victhom depending on Ossur goodwill and financial situation.
The SP is clearly oversold. Right now it is strading less then the value that Ottobock paid for the Neuromodulation division. However the risk level is so high that it all depends how you price the risk.
The other factor is the time we need to wait before knowing if future is good or not. Maybe in 2 years outcome becomes great. But in the meanwhile it is a flip of coin and 2 years in investment is eternity. The SP has more more room to go down even if it is, IMHO, oversold.
GLTA