Scenarios I may write out some possible scenarios about how Bioasis might work out over the next weeks and months. My opinion is that it's going to be explosive and has the likely potential to be very good for shareholders, and the possibility of being disappointing.
About the trolls, it's going to be fun watching them twist in the wind. When I come onto this forum with criticisms of Bioasis, they consider that I'm infringing on their uninformed negative territories. It takes them a few hours to figure out what to post about me, or to me, so it usually boils down to personal attacks. Personal attacks are always an indication of a lack of knowledge and argument.
About a rollback, 30 to 1 or otherwise, it's been posted here many times that the company's corporate bylaws permit the BoD to do a consolidation without further voting by shareholders. In one of my posts yesterday I warned about a possible early (Aug, Sept, Oct) AGM or Special Meeting that would grant other powers to the BoD. No matter how much influence others may claim to have over shareholders, I hope that shareholders can and will stand up for themselves. Remember that if a pharma wants xB3 and/or drugs that it enables, then the shareholders might also consider wanting Bioasis.
There are an infinite number of combinations and permutations of deal structures, players and terms that could play out in the weeks and days ahead. I will post some scenarios that fit known facts. I have already posted one about Protalix upon which I will expand, whether Protalix is a possibility or not. I am now ambivalent about such a possibility.
What I am nearly 100% sure of is that there is a plan scoped out and it has been placed in action. The plans, I believe, are ambitious. But nothing is free and shareholders will have to give something to get something. The question is whether the BoD and management have placed shareholder interests at the forefront, not just saying so, but actually having them in the forefront. The moment you hear "it's the best we could get" then understand that they know there was more to be gotten.
And the next question is whether the BoD is wise enough to affect good deals when investment bankers, pharmas and other players think they see opportunities for themselves without consideration of the shareholders. They will try to get everything they can from shareholders. That's the nature of business.
This can look like a game to the players, meaning the Bioasis management and BoD. Sitting at the table with pharmaceutical executives, throwing 8 and 9-digit numbers around, can be heady stuff. When there is hubris involved, the thinking that, by golly, we're good at this game, there is then a real chance of being badly beaten. Bioasis deals for which financial terms have been disclosed are not very pretty deals. I think confidence in management and the BoD to get good deals may not be all that strong. I think they have something to prove, especially when they, themselves, so quickly compare Bioasis favourably to Denali. Prove it, I say.
Further, disclosure methods, as I have previously opined, suggest that the company doesn't believe that shareholders will figure out the shortcomings in those disclosures, or will buy into excuses for poor disclosure. Problematic and missing disclosures are evident within historic documentation, including the website, financial reports and corporate presentations. A not-quite-trivial area of concern for me has been when documentation has not been updated following key personnel changes. That's happened a number of times, all fully part of the public record. There have been more subtle examples that are even more concerning to me.
Individual disclosures or missing disclosures may not be too concerning. The real problems relate to the fact that we don't know what's missing, and more importantly, that management is engaging in this behaviour. Trust declines when disclosures are "off" or missing.
So, big things coming, upheaval, money to be made, maybe a lot, maybe a little, surprises, you name it, but for sure, there is suddenly a lot to talk about.
jd