tetra does a marvelous job of showing investors a carrot (in this case a DIN), but investors are not seeing the way to the carrot. partly cause their preferred ignorance, partly cause management practices sending out useless NRs (eg updates to an update) and preying on negligent cannabis sector investors.
since you asked i will present some previous issues i attempted to discuss with the loyalists that were met with abrasive insults and personal attacks. i will concede that some of the points could be from memory and dates and numbers may be off, but the meat of the point still stands. I will back them up where I feel appropriate. Please feel free to disagree with me with factual information and not just “basher” or “fake news”. share structure not many invested in tbp discuss this very much. most don't even appear to know what the fully diluted count is. the share count increased 23% from november 17 to may 18. while most of this can be attributed to a capital raise there was also a lot of cheap paper floating in from exercised options and warrants that brought in a measly 700k. see "spinout". Yes, I understand that options and warrants are of the normal and I have no issue when a company awards modest amounts at fair exercises prices. Read on.
spinout this to me is the ugliest and i've tried to discuss it before but all people want to do is ignore it. remember this discussion: https://www.stockhouse.com/companies/bullboard/v.tbp/tetra-bio-pharma-inc?postid=28129430 "Effective March 19, 2018, the Company acquired the remaining 20% interest in PPP. As a result, the Company now owns 100% of Phyto Pain Pharma (PPP). The Company acquired the remaining 20% interest in PPP from the non-controlling Shareholders of PPP for a total purchase price of $2,484,696 in cash and $9,940,879 common shares of the Company (with a fair value of $1.00 per share). The Company’s purchase of remaining 20% of the shares of PPP has been accounted for as an equity transaction with the excess in fair value of consideration, plus equity of the noncontrolling interest, allocated to deficit"
so the company performed the raise and immediately used some of those funds to buy what was previously theirs. no vote to the best of my knowledge. i had previously asked what the results of it were and it was met with silence. And that was only for the remaining 20%. The other 80% was also purchased with shareholder value and awarded to both rancourt and chamberland. I’ll let you look for it.
cash position "As at May 31, 2018, the Company had a working capital surplus of $10,210,539 (November 30, 2017 – 1,993,717), including $10,636,702 (November 30, 2017 $2,193,114) in cash and current liabilities totalling $1,219,793 (November 30, 2017 $499,053). The Company must secure additional financing to be able to fund its ongoing clinical trials. "
with 3M cash-burn per quarter seems to me there is a raise coming soon that will further dilute shares. that is if they are even able to secure one after the one they used for their spin-out purchase shenanigan. maybe the NBUDs shares were given as some kind of retribution for the PPP0001 purchase or maybe they'll use those funds to buy out them back with TBP stating that they need to own their own supply. Frankly, I’m not even sure how they are burning that cash. Mind you this 3M cashburn was also before all the other studies they said they were going to do:
-fentanyl:
https://tetrabiopharma.com/investors/press-releases/press-release-details/2018/Tetra-Bio-Pharma-Takes-on-Fentanyl-in-Head-to-Head-Trial-for-the-Treatment-of-Breakthrough-Pain/default.aspx -fibromyalgia:
https://tetrabiopharma.com/investors/press-releases/press-release-details/2018/Tetra-Bio-Pharma-TargetsMulti-Billion-Dollar-Fibromyalgia-Market/default.aspx -rare cancers:
https://tetrabiopharma.com/investors/press-releases/press-release-details/2018/Tetra-Bio-Pharma-Targets-Rare-Cancers-in-the-United-States/default.aspx Throw in the gimmicky stuff they present like the hemp drink and munchies-be-gone. What will be the cashburn then? Even better question. Who is doing all this work, how are they paying for it and as far as the gimmicks go – how much are they paying to produce it cause we know they don’t have any facilities themselves.
Management no ceo. an unexplained resignation of fortier resigning after a few short months AND right after the spin-out. the MDA states: “On May 14, 2018, Mr. Fortier resigned as the CEO of the Company and was no longer considered a related party after that date. " this news release, dated april 3, says he "left today".
https://tetrabiopharma.com/investors/press-releases/press-release-details/2018/Tetra-Bio-Pharma-Names-Guy-Chamberland-as-Interim-CEO/default.aspx why is this not stated correctly either in the news release of the MDA? This appears to be deliberate and doesn’t coincide with any type of notice of resignation. 5.5 week-notice?
Rancourt leaves the company after the huge payday, not even completing the project.
Chamberland is in high promotion with interviews from his basement he is clearly in pump mode and should be for his own pockets as he has a bunch of nickel warrants set to expire in feb. when he sell themselves remains to be seen. Is it coincidence that the august pumps and leaks on SH started after another expiry:
“As at May 31, 2018, a total of 2,025,000 common share purchase warrants were exercised for
gross proceeds of $511,300. The warrants had an average exercise price of $0.25 and expired between December 30, 2017 and August 15, 2018.“
I’m also skeptical of chamberland’s commitment. Take a look as his history on SEDI.ca. he knows what he’s doing in the share compensation department.
I haven’t done too much DD on any of the new guys, but bringing in a Valeant MARKETTING guy certainly is not a shining light.
I could go on about some other facets, but frankly that in itself is enough for me to not invest a single dime in this company. I still pay attention to what’s going on to see if my suspicions about management and/or insiders trading off news releases is correct (remember TTgirl of 2016/17). There appears to be arbitrage set up up-and-down the equities. Do you recall the last buy audet had to file? It was 0.60c. coincidentally what the SP was floated at a low volume over the summer, before SH leaked some information, and an out of nowhere day volume….got some heads to look and then tbp released a flashy presser about a HC. Don’t believe me? Take a look at the chart. August 7
th and 8
th the share price jumped out on 500k volume…worth only about $450k, but enough to produce a 10% gain since volume was completely dry. then fomo ensured while others sold the news on august 9
th.
https://tetrabiopharma.com/investors/press-releases/press-release-details/2018/Health-Canada-Gives-Green-Light-to-Tetra-Bio-Pharmas-Cannabis-Vs-Fentanyl-Trial/default.aspx
the fomo continued right up until 1.30, which coincidentally is the same exercise price of the warrants. So 0.60c to 1.30c is an interesting
trading range. There is no reason to sit around and stay focused. The next finance (which better come quick), will be very telling.
Anyway…..i think that’s enough to warrant some thought.