RE:RE:RE:RE:RE:RE:How Low Can It Go?In the fall of 2011, shortly after I bought Bioasis shares, I had my first chat with the CEO. I expected to chat about pre-clinical studies, clinical studies and scientific stuff. Instead, I was told, as many others were likely told, that the company would likely be sold by the following February. That would have been February 2012.
I was alarmed and dismayed. I thought it was a lazy way out. I wanted to sell my stock. Instead I started writing about the value of getting drugs into the brain. My purpose was to make the case that xB3 (then Transcend) was too valuable to sell for peanuts, and thus prevent the BoD and CEO from selling the company without proof of anything. When I asked whether we were going to begin preclinical/clinical programs I was answered with the rhetorical question, "Why should we take that risk when we can do licensing deals with pharmas and they can take the risks?"
I thought we were taking the larger risk and I said so publicly. The rest is history. No deals, probably because we weren't even trying to advance a clinical program. If we wouldn't take the risk, why would anybody else? Imagine, we had a means of treating brain tumours, worth billions per year in revenue, and we weren't even trying to get a clinical program underway!
So the next CEO decided the clinical program was the thing to do and he obligated us to the WuXi effort. Trouble was, he couldn't raise money unless he called existing (Canadian) shareholders, and that source ran out and then he was out, too. I was called and I helped. I also played a significant part in the bridge loans, convincing large shareholders that saving Bioasis with bridge loans was the right thing to do. Chrispi, an independent shareholder with connections to "things" was fundamentally helpful in getting Bioasis funded without massive dilution.
The shareholders had made it clear in early 2019 that the new CEO could not do a financing at those 20¢ pricesw. And she promised not to do it. It was down to BD deals, but of course it takes two to decide to do a deal. The previous CEO had done the terrible Prothena deal and I don't think anybody had an appetite to do that again. Trouble was, the pharma industry thought they could get another Prothena deal from us and I think DrDR had to talk them down from that before serious deal negotiations could take place.
And they finally did take place and Bioasis got the first real accomplishment in its history- a negotiated deal that allowed the beginnings of an independently financed Bioasis. First time ever!
So I understand all the hand-wringing and temper tantrums, but the fact is, Bioasis had no wings until June 29, 2020. Not ever.
I'm sticking with xB3 and DrDR. Not rain or shine, but because stuff is happening. I promised months ago to write a "things-that-wouldn't-surprise-me" post. That will come out today. What astounds me is the complete lack of imagination on this forum about what the possibilities are.
jd