Liminal BioSciences Inc. LMNL

The thing is....

[sah1]

The company has to raise $75-100M to get to BLA approval. This is likely to be an equity raise as a marketing deal is unlikely in the near future. Nasdaq listing with 20% dilution, at what price?

[realstocky]

This post has been removed in accordance with Community Policy

[Dibah42]

If that is the case then why doesn't Clulow lend LMNL $100m from the TV treasury @ 10% ?

[aussyspitz]

Because it will be much easier for them to squeeze the remaining retail investors pockets/wallets via printing more discounted shares to include the possibility of issuing some further discounted  warrants to insiders/instutional investors at the expense of retail investors

[StockReddy]

My guess is at rights offer price.

[ualcin1]

Sah1, you seem to rule out Liminal using its LOC. Why?

[sah1]

Because of the past history, I feel that the LoC will be used as a measure of last resort. Also, there is a need to improve market liquidity so an equity raise on Nasdaq would fit the bill. 5M shares at US$ 15- 20 would set the company up very well. Alternatively, I wouldn’t mind if Lmnl sold a significant interest of its plasma protein business to a private equity firm with cash upfront and

[aussyspitz]

By my calculations they could issue up to about 8.73M in a combination of shares and warrants that would give them about a 170M @ $20 and still give TV its 51% shareholder control that would also buy them at least a year and a half to make something happen. On paper it looks at least plausible good luck sah1 hope it works out for you.  

[ualcin1]

Sah1, apologies for the delay in thanking you for your response. Knowing that Liminal intends to file its amended BLA by September 30, could your analysis take into account that the FDA could award it a PRV and if so, how much might this change, in your mind, the financial landscape of the company?

[sah1]

The equity raise I am talking about would get Lmnl to Bla approval. If a voucher is granted upon approval this will help the company immensely at that time. It is a big ‘if’ though. 

[ualcin1]

You're not confident that Liminal deserves a voucher...

[sah1]

I am hopeful and it is clear the company will apply for a voucher when it submits its Bla. Will the FDA grant a voucher is another matter? I don’t know the details of the program so we will have to wait and see.

[ualcin1]

Thanks sah1. Since we are talking about an amended BLA, could the FDA grant the voucher sooner than usual? Is there anyone in this forum who is familiar with these procedures? Because it would be a significant game-changer this year...

[sah1]

As far as I know, a voucher is granted upon approval.

[Dibah42]

I've known you long enough that you won't intentionally mislead but this is potentially misleading. A very very very miniscule minority qualify for a Priority Voucher.   Details of the prog are to be found at the FDA site for those interested.

[sah1]

If you follow the trail, Dibsh you will note that I used the word ‘if’ when talking of the voucher

[foofadooo]

PRV info...... Page 17......   https://www.fda.gov/media/112176/download foof

[GunnerG]

Interesting is Page 19 where they talk about "Future?" and then mentions "Sunsets - 30 Sept 2016 altough legislation may be extended until 31 December 2022". Was the program cancelled?

[ualcin1]

True.