RE:RE:RE:Actions encore à $0.07roger1234 wrote: For most existing shareholders the mix of old-new shares would require a multiple in the 2-digits to see their money back, based on your earlier calculations. Is that worth the risk and anxiety? I will let everybody make his or her own decision....
There are a lot of moving parts here, and we are the ones with the least information to decide to join or not. The first hurdle is definitely for Consonance to issue a NR saying they will not exercise
any of their existing shares (old, new or indirectly owned) in the rights offering. That would clear the air.
I still have a position and may exercise my rights, but I will wait and see what will come out of the AMF enquiry first. If tehy have serious doubts, the rights offering will not be allowed to go ahead (remember, it has to be approved by the TSX first).
roger I agree mostly with what you said here. These are my feedback:
1. It's true that the existing, non-SALP shareholders' equity value has mostly vanished (>91%).
However, if they don't take part in the rights offer (with new money or sales of a portion of their position at 7 cents or combination of both) to lower their cost average, then their chance of benefiting from the future success of this company, if/when the success occurs, is almost non-existance (they would need a 2-3 dig multiples to break even). They may as well take their loss now and never look back, imo. However, if anyone feel that they can tolerance the future risks, then the rights offer is worthwhile, imo, anything that can lessen the loss is money recovered (gained).
2. I understand that you want Consonance to issue a NR to confirm that they would not excercise their rights in the rights offer. However, I'm doubtful such a NR will be issued. As I stated before, I doubt very much that for their purpose they need to put in more money to security their position as the secord largest tute to SALP.
3. I understand and agree with your thought on AMF's possible intervention. However, having TMX approved the application on April 23 showed me that perhaps the oversight by the security authority is just as in-effective (or difficult to obtain help) as the legal process (e.g. class-action suit).
That's why I think that a more prudent thing to do for existing investors is to decide/
make preparation for the immediate future (e.g. to exit now, or to raise money for the rights offer), in case AMF too, like TMX's April 23 decision, agrees with the company.