So, are we going to see Ladenburg Thalmann, Midatech and the placees take another run at Bioasis?
I'm worried that this financing may simply be a means by a different route to complete the original deal voted down by Midatech shareholders.
Midatech
needs shareholder approval to complete all facets of this financing. A general meeting for such approval is being called by Midatech. Nevertheless, Midatech gets money now and they'll have enough to complete the bridge loan to Bioasis. (Is this the "clarity" that Bioasis is currently claiming to be imminent, this week, even?) This would buy time for Bioasis, allowing the company to make payments in April and probably May to Lind, thereby keeping Bioasis away from a default event for a while.
This would also give Midatech time to complete their meeting and to firm up the prepaid warrant aspects of this financing, The number of prepaid warrants issued could be much higher than the current financing indicates. Without a shareholder vote, the number could be based on a share price from 58¢ to as low as 30¢, and as low as 10¢ if shareholders approve all aspects of the financing. With the current share price and financing terms, the recently current MTP shareholders, in the end, will own about 12% of the company, less if the shareholders approve the financing. LT and The Placees will own at least 87.8% of Midatech. This is for under $6 million in financing proceeds.
Meanwhile, what will DrDR be doing? Remember that Midatech was the roadblock to the previous deal, not Bioasis. Bioasis shareholders approved it. So the question arises, does Bioasis need further shareholder approval to complete any deal DrDR sees fit to complete with Midatech, LT and the placees? What magic deal might we yet see?
Why are LT and The Placees willing to finance Midatech without Bioasis and xB3? Do they expect to acquire Bioasis?
Is there anybody out there who realizes that for a couple of million dollars Bioasis could be saved from this fate, that saving an independent, minimally funded but solvent Bioasis would cause the share price to jump, allowing a far less dilutive financing to be done in the near future, leaving current Bioasis shareholders holding 50% or more after such a financing? That's far better than the 3% or 4% that Bioasis shareholders would have after a Midatech acquisition? (Those prepaid warrants will likely knock Bioasis shareholder ownership way below the original 6%.)
So, might the "clarity this week" currently being predicted by Bioasis be that Bioasis has received the remaining C$250,000 of the bridge loan from Midatech? Peace and comfort for shareholders, at last, but with a Midatech hammer to fall on the heads of Bioasis shareholders soon after?
If Bioasis shareholders want to hold on for something far, far better, then they'd best scrape up a couple million bucks right now and secure the future independence of Bioasis and its shareholders.
jd