TSXV:BTI.H - Post by User
Post by
Boomskidon Feb 24, 2023 2:13pm
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Post# 35303975
Midatech Share Price Is Dropping
Midatech Share Price Is DroppingMidatech's share price has been dropping from 76.5¢ on February 9th, the day that Midatech announced its new financing at an initial proice of 58¢ per unit. As I write this, the Midatech share price is down 33% to 50.8¢.
The financing could be priced as low as 30¢ per unit dependent on share price. Dependent on certain shareholder approvals, certain aspects of the financing could be priced as low as 10¢ per unit. This would essentially wipe out current Midatech shareholders who would then have ~5% ownership of Midatech.
If there is a Bioasis deal coming with those almost worthless Midatech shares, then current Bioasis shareholders could end up with 2% or 3% of the resulting company, with no guarantee that the resulting company will retain much of any ownership of xB3.
By any definition, this would be a wiping out of Bioasis shareholder ownership of xB3.
Why is the Midatech share price dropping? Is it the market and the S&P Biotech EGF or might there be motive for others to do it?
jd