biOasis Technologies Ord Shs V.BTI.H

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Forcing Bioasis to Answer

[prophetoffactz]

emmitfitzhume wrote: 1.62 % of any future XB3 success compared to our share 5 weeks ago. that is all that is left for Bioasis shareholders in the new structure.

Show me where am I wrong in this analysis POF?

I've done the best that I can. With all obligations settled Midatech and BTI get 33% of the upside of Biodexa as below. The company will hopefully be viable with a cash runaway to key catalysts. Midatech's assets from glioblastoma to Q-Sphera have been in human trials and are therefore de-risked to a degree. xB3 may be two years from a clinical trial. Preclinical assets are generally much more risky. Glioblastoma is a natural target for xB3 and Midatech has an asset in trials. Midatech's Q-Sphera is being investigated by J&J as is xB3. Q-Sphera is potentially very big. There are no long acting monoclonal antibodies. The scale and resources of Biodexa can support stronger agreements and thereby limit dilution in deals. Midatech's clinical assets could also generate cashflow and support a pipeline of xB3 and Q-Sphera assets in the future limiting significant dilution.  


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Midatech holders(including outstanding Midatech warrants) get ~10% of the fully diluted company.

BTI shareholders(including outstanding BTI warrants, bridge financing, Lind obligations, Ladenberg Thalmann obligations) get ~23% of the fully diluted company.

Together Midatech and BTI, as above, receive ~33% of the fully diluted company and Armistice Capital receives about 67% of the company for US$20 million in cash and near term expected cash. 

To me this looks like a takeover of Midatech by Bioasis and a recapitalization of both BTI and Midatech which were flat out broke with no cash runway to expected catalysts. BTI was also in material debt. Given the historic bear market conditions solving BTI's debt problem and providing a cash runway to material events for both companies is not cheap. 25% of biotech companies have traded below the cash on the balance sheet in recent months. Also, Ladenberg Thalmann doesn't work for free. Did they help with Ellipses, Armistice Capital, and identifying Midatech and Cresence over the past year as well as look at range of other alternatives? I believe Rathjen said that she had presented another deal to regulators that was rejected. BTI got the big boys to help put this deal and financing together as a ticket to NASDAQ. While there is substantial dilution with this deal there is also substantial upside and together BTI and Midatech can also enter stronger deals saving dilution on the other side in deals. There is scale too. There are also potential synergies between assets. Midatech's clinical assets could also provide revenue in the future to support a pipeline of xB3 and Q-Sphera assets. As Midatech's CEO said he defies anyone to find a company of Biodexa's size with the same opportunity set. What is the revenue potential for the clinical and near clinical assets alone? $12 billion? And there's much more potential in the long term.