biOasis Technologies Ord Shs BIOAF

RE:RE:RE:RE:RE:RE:RE:Saltarelli is in the catbird seat...

[prophetoffactz]

"Yes, shareholders did demand that Rathjen avoid dilution. That was 4 years ago. Now, with 6% ownership on the horizon I see 94% dilution, with total loss of control.So, are you saying, poof, that Rathjen acted on shareholder wishes to do this?"

Being severely undercapitalized can boomerang bigtime. Maybe Rathjen should have said that she will only agree to take the job if shareholders put $15 million on the balance sheet to do something with. Then shareholders would have been forced to deal with the need to properly capitalize this company from the beginning. Giving her handcuffs instead of a properly financed company and telling her to avoid dilution into the worst biotech market in history and into relationships that demand secrecy was a big risk. Loading up on debt for biotech is also very risky given biotech's burn rate and eternal dependence on fickle capital markets; especially into the worst biotech market in history. Given BTI's debt it was leveraged to the crisis in biotech. It further had to pay Ladenberg Thalmann to help with rescue in any way possible.This company has been in a permanent state of financial emergency for many, many years. Biodexa put this company on a strong financial footing once and for all and gives it a cash runway to catalysts. Rathjenshould have demanded BTI be put on a strong financial footing to start.