RE:RE:grim grimmer grimmest
Are you two people the dumbest people on stockhouse?
First of all, once they pay off their debts, BNC's burn rate will go down from 800,000 per month to 600,000 per month, so their costs will go from 10 million per year to 7.5 million per year.
secondly, they have 10 million in the bank and will get 61 million. that is 71 million. They have 50 million in debts. that will leave them with 20 million. Do you guys think they are going to pay 20 million in lawyers fees to sell a 60 million asset?? Are you nuts? If they pay a million that leaves them with 19million. If they are spending 7 million per year that is enough for 2 years.
Thirdley don't you think there is a possiblity for some debt forgiveness? i do as some of the $20 million of the debt is from the goveernment and was structured to potentially be forgiven.
Fourthly, and perhaps most importantly, every biotech in the world burns through money and needs a partnership. Urocidin is a first class cancer drug half done its phase 3 trials. BNC has already spent 160 million on developing it and it appears that it will work. It is highly partnerable and will likely get a partner by the end of the year. Most partnerships will involve money up front, phase 3 paid for, milestones if the drug works, and a 20% royalty on the revenue. When endo was doing the trials they estimated Urocidin would have a $800 million per year revene. A 20% royalty would be $160 million per year.
Do yourself a favour and google "phase 3 cancer drugs". Please find me one with a market cap below $150 million.
Guess what, you won't find one.
BNC should be trading at $1 per share when compared to even the cheapest of its peers and I am confident once the management team brings the above facts to the street the market participants will bid the stock up.
It is underfollowed, underknown and misunderstood.
Urocidin has tremendous value and the stock is an easy triple from here, with another 50% upside from $1 when the partnership is finalized around year end.
There are no phase 2 companies in Canada with market caps below $50 million, but BNC with $20 million net cash and a phase 3 is trading at $40 million?
That won't last long. Complain or buy, we shall see who is right.
It won't be the people posting who think biotech is the wrong place to be, because it is the hottest sector in the US market and that enthusiasm will be coming to BNC shortly.
Hope you negative nellies sold so we can all look back and laugh