Last Trading Day to get Cheap Shares I have noticed that Bioniche makes big corporate announcements immediately after the end of their fiscal year, which is June 30.
- July 10, 2009: Announced Endo partnership agreement with $100m milestones, including a big upfront payment.
- July 4, 2011: Announced Australian acquisition intent (eventually abandoned).
Why wait until July? Under the $20m loan agreement, they have an incentive to push "revenue" as defined in the loan agreement into the 2013 fiscal year to meet their $3m/year growth covenant. So any partnership agreement on Econiche would best be announced in July 2012 to avoid putting any upfront payments and revenue recognition into the June 2012 year-end. Also, if there are goodwill and dilution implications, Bioniche would also prefer to record them in the next fiscal year (see their acquisition announcement timing last year.)
Therefore I think there is a good chance they will make a big announcement next week. So today is your last chance to buy the shares at a very attractive price.