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Liminal BioSciences Inc. PFSCF


Primary Symbol: LMNL

Liminal BioSciences is a biopharmaceutical company focused on the discovery and development of novel, small molecule drug candidates for the treatment of patients suffering from fibrotic or inflammatory diseases that have a high unmet medical need. Liminal BioSciences operates on an integrated basis from our talent hubs in Laval, Quebec, Canada, and Cambridge, UK. Our common shares are listed for trading on the Nasdaq Global Market.


NDAQ:LMNL - Post by User

Bullboard Posts
Comment by stockman6767on Apr 14, 2019 2:07pm
151 Views
Post# 29624889

RE:we are NOT going broke!

RE:we are NOT going broke!Ricroc, I am having trouble deciding on this score myself. I fully agree that PLI is definitely NOT going bankrupt. There is too much value and promise in the proven science they  have. The problem is the difficulty (inability?) to find the needed bridging funds until the revenue starts to flow. This all seems to have arisen now at the eleventh hour, so close to the finnish line due to the reluctance of TV to further finance to the FDA approval. They (TV) of course realize that getting some 2rd part financing is made very difficult by the lien on patents that TV insisted on getting. So was the extension by TV of the debt to them to 2024 merely a useless gesture as they understood they could force PLI to clear that loan right away in order to get 3rd part fifnacing for the remaining bridge fiancing PLI needs. So too, it seems to me that that the issuance of the warrants at about $1.00 (don't recall the exact amount) that they must have known would shortly be repriced to about 15 cents for 8 years was another such meaningless gesture that was done then just for pure optics to put TV in a good light and later proved to be another meaningless geature.

So is TV a well intentioned saviour or a wolf in sheep's clothing. If a saviour they must see PLI through to the FDA approval without unduly diluting the enterprize to the sole benefit of TV. There would be many options.
1) They could bide their time until the sale of non core assets can happen and provide a little runway for that to happen.
2) They could do a only a partial conversion of debt to equity and not fully insist on full debt conversion at the worst time for PLI and its investors.
3) They could actually provide the some $70 Mil of bridge financinging needed which is really just chump change for TV, This is what leads me to question the intentions of TV.
3) They could make possible the 3rd party financing by agreeing to give the new lenders priority over the lien they hold on the patents. This would readily open up the feasibility of 3rd party financing. As their debt is about $120 Mil plus the  $70 Mil of the new  loan would both be easily covered with surety by the calue of the PLI IP so TV can do this without any significant risk if their heart is in the right place without putting up a penny.
4) TV can merely issue a NR putting forward their intentions and how much they feel they need to dilute PLI and how they see the path forward on any restructure contemplated for PLI and the path forwarad to FDA approval. This would at least remove the great uncertainty that investors fear and help clear any ideas and fears of BK. Refusal to do so and help clear the air makes me wonder whether this is what TV wants in a self serving attempt to take over TV and keep the SP low until they do their debt to equity conversion at the most highly depressed price they can manufacture.

So please TV declare yourself by helping PLI out in its moment of need for the next 12 months or so so I CAN DISMISS MY CONCERNS OVER TV INTENT and only worry about how soon the FDA approval will happen! I very much hope that TV is sensitive to what this will do to their reputation in the future if they callously take the profit paid for by the many investors all for themselves. No one willl ever trust them again to invest in a promising a co in the future which is a serious concern for major investors like TV.
Bullboard Posts