The following previous post deserves a comment :
"Moreover, we are buying this Company at a 20% discount of stike price of the convertible, where management and directors bought $750,000 of a $3million dollar deal. If that is not forshadowing I don't know what is. I think we will see 40 cents in 2013 on BXI"
The insider who put up the cash have a debenture or bond with BioExx NOT rull risk shares. Their debenture/ bond has some SECURITY in case of bankruptcy even though it is a junior status after the senior Romspen loan and the bank maortgage. At least they maty get something. IF there is success they can convert at 10 cents with free warants at 15.
So those investos buying at 8 cents may have a 20 % discount off the convertibel stike prioce they assume 100 % risk in case of failure but the insiders have little or no risks. That is why I would have preferred to see the insiders pay 8 cents for full risk as a sign of confidence.
What to do ?
If you have never owned the stock WAIT for a JV announcement. If it does not come and thye file CCAA then you lose nothing. If a JV comes and there is a good deal the stock will then have security and you can pay the higher price say 20 to 30 and still get a lift to $ 1.00 with no worry of bankruptcy whenh ther is a big backer. Remember it will take 18 months to construct the Saskatoon plant before production and sales and profits so the market will have plenty of time to assess the merits and the sp will go accordingly to that.
If on the other hand you are a long time holder and a believer strongly that there wil be a deal then BUY MORE now at 8 cents. After all, you paid a lot more before so pick up cheap shares.
But if you are a long time holder and are nervous about a JV happening you are trapped becaeu if you sell now you will worry sick that you may miss the boat and will feel terrible if it shoots up on news and you have to buy in higher.
Personally, I already sold out around 30 cents last year for a major loss and then at 18 to 23 cents this year. I
I am skeptical about the continued talking with no letter of intent and especially that no Canadian or U.S.A. food company were interested and I am on the sidelines. If it goes bust I will say "I told you so``
But if there is a real deal with real cash and real contracts and real construction then I would rather buy then and pay more with less risk going forwward.
I might add with the high labour costs here why would the Europeans simply not buy out the company for peanuts and run it out of China with a huge government subsidized plant and cheap labour. They have lots of Canola there. The actual process has to be viable and profitabgle on a large scale and I have my doubts about that using water only with Phytase enzymes.
Also, why would any future partner want to pay the current bloated management for 18 months while there is no production of protein and only construction. The first thing will be - Who is running the show
I suspect the delay in talks is that a successful company does not want to be held beholden to overpaid losers who blew 100 million on a solvent process that failed and no have nothing to show except a GEA report for a water process yet to be proven on a large scale.
The academic or food company literature does not even recognize BioExx in any links or on google.
They may be blowing hot air and smoke and mirrors one delay after another.
Let us see what he says in December.
Will it be ``We are close to a deal and still talking`` or here is the actual LOI with cash to tide us over
I will wait and see