There is only a few problems ....with the new party line being served up today....i.e. that it is probably just "DEAD money for a year" or "
lets CONTINUE to underpromise...and maybe someday in the distant future we will over deliver" - cuz that's the "responsible" thing to do.
Here's are just some of the probelms with that logic:
- future capital raises will be more dilutive (there is a fixed amounnt of future cash flows that will have to be spread not only to current owners, but to all the new owners coming on board, particularly at low SP's)
- option grants and warrantes will continue to transfer ownership percentages from non participating shareholders to participating shareholders/insiders (ie there is only a fixed amount of future cash flows)
- Non-insiders will have no opportunity to rebalance their portfolio by selling a portion at higher prices (ie they will have to assume a similar risk to the insiders but without inside information) In for a penny, in for a pound (or a pounding) - so to speak.
- Not only that, but insiders that hold options and warrants - are not even putting any capital at risk for at least a portion of their holdings. Not true of small retails that typically must put 100% of their capital at risk in order to get any upside.
- it could mean MORE DEAD CANDAIANS... if the Company was to under-promote their stock alongside their medical solutions (e.g Critical Care Conference) would there be less adoption? Why should Cdn medical professionals and ICU Doc's care if they hear little about it in the media or at their conferences? even movie trailors come out more than a year aheadof release in order to excite their audiences, and create anticipation, discussion, etc.
- Capital is attracted to the place where it could & should do good. In theory promotion should speed up delivery and help get solutions to the market. The better the idea and the better it is promoted, the more the cost of capital is lowered (a direct benefit to all shareholders and ...for that matter ...future Septic Shock patients and people hospitalized with Covid-19. Doesn;t work for the FDA you say? Look at pre-Trial publicity. The court of public opinion is very influential to outcomes.
- retail shareholders will have no choice but to pay more taxes when they sell (now further into the future) where almost for sure the capital gaiins inclusion rates will be higher, With no promotion, that ship will sail. Insiders won't get that either you say ? Awwwwe ! Remember insiders with options and warrants are putting less capital at risk. Less capital at risk and more information is a fair trade-off.
- medical professionals will continue to look on the Dialco products and PMX with more skepticism based on the fact that the share price seems to languish ("if the financial market doesn't seem to care about it, then why should I?") I know many many doctors that like to invest in their field of expertice.
- possible buyers of entire product lines( once approved FDA) will not feel any pressure to pay more or "up" their valuation ("if my competitors are not bidding up the price, why should I?")
- Perhaps many more Covid-19 patients in both Canada and the US, that develop endotoxemia via the much being talked about gut translocation and viral & antibiotic shedding process, will DIE. A medical professional might say to themselves, " I hear that hemoperfusion may be an option for this particular Covid patient, but the Co. that holds the rights is not even talking about it?" "I'll wait on trying that...maybe next year?"
- It's all and only about the FDA you say? If the FDA understood the compelling connection better and more fully, would that knowledge perhaps light a fire under their azz to get 'er done?
The message being sent to small shareholders "you will ilikely have to tie up your money
ostensibly* for another year - meaning you'll lose any opportunity to invest and earn a ROI elsewhere." Some would say this is actually a shout out to small and or weak retail shareholders " you're not going to earn anything here, so let us take good care of your shares ...you can always come back later...hehehehehe"
I would love for any of the former bashers, now turned apologists to address the above points
*
os·ten·si·bly
-
apparently or purportedly, but perhaps not actually.