Very InterstingI get a real kick out of the posters on this thread! Pepito, my former foe on the FCP board, and certainly the board cheeleader and all the anguish he brings to other posters! All the long time PLI loyalists, other FCP traders, and my goodness,.. Most PLI forum perusers don't realize how lucky we are to have the honorable presence of Sirtechno on this board, from his technical wizardey, his insightful understandings, his determined detective skills, to his comedic postings and most importantly, his incredible fish slaying abilities! LOL
I feel somewhat vindicated in that there is now mention of Pierre giving up his mv shares, as I have posted a few times on this thread over the last few years always calling for the abolition of the 2-class structure, and to put this deal into play. For those of you who have time to read old posts, I mused when I read a post I did on this thread a year ago - heck I even mentioned the possibility of this deal going to 0.50...
https://www.stockhouse.ca/bullboards/viewmessage.asp?no=8260120&tableid=2
Back to the matters at present, as mentioned by barcodewhiz, there certainly was a block overhanging the market, and it's intersting to note that Mr camire of Paridagm , or one of his associates might have had the best pick at this bottom-feed,loading up at bargain levels. If this is all that's overhanging the market, then there might be a bit of blue sky here for bargain hunters and day traders.
I was surprised that there was not a strong reaction on this board when the HML financing was announced on 9/22. ... I was away fishing and never noticed it, but whenever a best-efforts deal is announced, it's usually all spoken for, especially when there are all those over-allotment provisions. My point is that these deals are always done before they are announced, all the paper is spoken for. With a huge cash injection like this, it bodes very well for the North American frac deal with PLI. The main problem PLI has had with it's blood fractionation technology was that it had partnered with cash-strapped HML, who was so terribly undercapitalized and still wandering like a deer staring at headlights from it's artificial blood disaster.
I would sure like to know as to what's going on with that financing at HML. A $15 - 20 million financing for HML represent a dilution that might give the placee(s) control of the comapny, especially if the placee were one entity or perhaps some "friendly" entities. (The current fully diluted market cap of HML at present is only about $15 million canadian). I think that some major entity or current frac player might view HML as irresistible at these levels, especially when you consider the value of the HML's Meadowpine Ont faciltiy, worth about $80 million canadian - heck even the real estate is worth more than the meagre cap of HML these days. The big problem for other fractionators around the world and in North america was the cost and risk of re-tooling away from the Cohn process and into Cascade process, which is much more cost effective and with much higher yields. Buying a chunk of HML at these levels would be an absolute no brainer.
This could lead to a trigger of events, imagine PLI being partnered with a Savy and cash rich partner for a change instead of the likes of HML or the ARC.... If only the Arc had business savy and cash like a private entitiy, then the blood filters would have moved forward more quickly than the slug paced painstakeing half decade all us long timers have endured with ARC.. Now I know what they mean by the "Not For Profit Entity" like ARC, more like an acronym for "clueless about profit".
Toss in the fancy rumors about selling off the PRDT filters, and we might have a serious double whammy here, involving on both whammies serious capital injections that are not dilutive - the company simply cannot affrod dilution at these current ridiculous levels, and IMHO, the last financing was unnecassary and ill-timed and it clearly revealed Mr Laurins inability to create value when the chips were on the table. And to think that the shares were driven down from 0.90 to 0.55 by short selling hedgers, who were able to cover by participating on the financing at 0.55 - unflippin unbelievable..
I guess it's back to the same old question - is it time to back up the truck?? Although I have lost good money on this deal, I was fortunate to lick my wouds and sell off my position back in Feb at just under 1.50. I then repurchased at 0.90, 0.65 and 0.55, but still have considerable adding to do to my position... Somethings cooking here and I'll be on the buy over the next few days here..
Sorry for such a long winded and diverse post, keep up the great posts guys, and good luck to all longs..
JANDD