What mood are you guys in? I really don’t understand the mood of some of you here.
We have been waiting for this 1067 transaction since Neil and now finally, when the deal is nailed, we should be happy.
I foresee a very nice development of the stock during the coming two years and new investors, buying now at these levels, 27 cents, will likely make a nice 10-bagger in a couple of years or so if the animal health and anti-wrinkle deals materialises as expected in a timely manner.
But do you own due diligence and don’t trust what I write.
But the reader should be equally sceptical to what others post on this forum.
I read that Institutions “will not buy on the open market and likely will receive a placement, which is what Howie would like based upon his desire to continually dilute and raise funds for the coffers.”
The deal with AbbVie consists of up-front (X), royalties (Y) and milestones (Z). My view is that, when finalising a transaction, there is a typical combination of these X, Y and Z levels.
If Sirona felt that they were in need of X+ in order to execute the business plan going forward, I am sure that AbbVie was willing to agree on such a level. In return Sirona needs to agree on a Y- or Z- level or a combination of those. I am sure Linda Pullan is in full control of how to calculate these levels and what is common practice during such negotiations.
The stock has been diluted in the past, but I do not see any reason why it would be diluted with placements going forward. We as shareholders would certainly not appreciate such a dilution and the CEO, the CFO and the Head of R&D are major shareholders. It is certainly not in their interest. Moreover, there are plenty of float out there for interested Institutions to pick up.
The TSX Venture is rather an immature exchange as it seems with Sirona trading at 27 cents. I will sell some of my other stocks later on today and buy more Sirona at these levels, for me it is a no-brainer really.
GLTA