Sernova Corp T.SVA

Used BioTech Company For Sale by Owner - 600M OBO.

[BioTeck]

Everything must go! Any reasonable offers will be considered. No lowballers. Actually, lowballers are welcome too.

[MustangSalley]

Lol .... is Selfie the used car salesman on this deal ? Would he welcome a trade in ? What a disaster!!

[BioTeck]

Low mileage, lady driven and barely left the garage. Full tank of gas, just needs a driver. 

[MustangSalley]

Is it an automatic with immunosuppression ?  Does it have air conditioning or cadaver stem cells? Is Frank the husband of the lady owner?

[BioTeck]

Lots of aftermarket mods. Custom Franky moustache bumper. Custom selphie exhaust, makes a lot of noise and pushes hot air. Financing available through Canaccord.

[MustangSalley]

Is there an extended warrant I mean manufacturer's warranty expiring any time soon. What kind of mileage Spillup I mean fillup does it get per tank ? I heard it had some German company parts too ? I thought you said it had low mileage ? I am looking at the odometer and it says 360 million shares I mean 360k miles . What are the condition of the tires ? Does it have a spare DSU?

[BioTeck]

Tires will need to be replaced. They've been kicked many times and taken for countless test drives by potential buyers. Some have even taken it for an extended 2 year test drive but in the end brought it back. Interior is in decent condition but lots of grease stains from all the egg mcmuffins.

[Redbaron2211]

ha, at least we changed out our bagged out Canadian BRP engine for a new German high performance Mercedes.   Sure body has 360k miles on it and still full of grease stains and egg mcmuffin wrappers but at least we can go places without any more stops to the local auto shop that is known for its poor warranties and mustache rides.    

[Redbaron2211]

All joking aside, 600Mil US would be a fair valuation and is around where the Evotec investment at $2.5 would peg this. Market during times like this is irrational and inefficient.  

[MustangSalley]

Red, At this point everybody would vote and approve a $2.50 buyout for sure .   It would be approved by a majority of the shareholders in a heartbeat even. Spillup would fight it , but it is up the shareholders. Hoepfully their is a suitor sooner before summers end .

[Redbaron2211]

Agree MS especially with all the macro uncertainties.  The way management can protect the company from a cheap takeover would be a push for more institutional buying.  Unfortunately it doesn't come easy in this environment.  With the current sentiment and breadth extremes we are due for a multi month rebound in markets and given what DF points out with Sernova looking attractive

[BioTeck]

Yes we did see this all coming. Everyone except the company. All this institution talk only makes sense if in fact institutions are aware of our existence. I question Sernovas ability to market. They have done a horrible job with retail so I don't see them doing a superb job with institutions. The proof is in the pudding and I don't see institutions or anyone pudding in any bids.

[MoneyMouth]

This reminds me of march of 2020 when the pandemic hit, and there was a chance to buy shares at 12 cents.

[BioTeck]

There were lots of short term catalysts then. Now we are still waiting for patient 7. Still waiting for the bigger pouch. Still waiting for thyroid. Still waiting for evotec cells. Still waiting for 20 million warrants to expire. Still waiting for the recession to start. Still waiting for the war to end. Still waiting for China to attack Taiwan. Still waiting for inflation to slow. Still waiting

[Redbaron2211]

The writing was on the wall but at least they were able to get to this point during the last couple years.  The cash in the bank came just in time and at a reasonable price that underpins the valuation and not having to raise money in a potential recession is a big derisk.   I'm not sure Sernova will have to do much for marketing to be on the radar of institutions and attract

[BioTeck]

Institutions won't buy on the open market. They will want a placement. It'll be like give us a PP at 1.40 and we will bring the price up to 1.40 and keep it there for a month. If management had half a brain they would have known there warrants are going to be a problem and focused some time and energy on getting an institution to start sucking up shares even at 1.40 so warrant sellers

[Redbaron2211]

They will buy at these prices especially when they know the company is cashed up for 3 years.  Maybe this was the plan all along.   Secure cash then flush out the cheap paper into institutional hands.    

[Metalsguy1]

Red this is looking more like Spillup flushing the company down the toilet just so he could dance with pride. At least the people whose dumb a$$ response to criticism is " move on" can finally see what happens when their wish comes true. Did I say a bid at 1.50? Better luck selling a Yugo at this point. If course the answer of management to being skewered like a pig for a BBQ is to

[BioTeck]

You are giving Spill wayyyyyy too much credit to think he planned this or anything. I bet he is angry with the seller(s) instead of being angry with himself for not seeing this coming or his overpaid staff. The volume has been piddly. Even panic selling can't get the volume on this stock up.  Rolled the dice and bought some sub 1.00. 

[MoneyMouth]

This is going to get really ugly until after September. 25 million shares worth of warrants to be exercised between August 16th and September 2022. This stock cannot handle 25 million in volume, especially when you look at the fact that for 2022 so far, there has only been around ~31 million shares traded on the tsx/tsxv ALL YEAR for this stock. 

[Redbaron2211]

Not everyone needs to sell commons to exercises their warrants. I'm still sitting on commons that I exercised last year with cash from another deal.   Most in those placements were high net worth individuals they are not going to be forced into a corner selling at a discount to execrise their warrants.  

[Stockfshr]

Redbaron: You said "Most in those placements were high net worth individuals they are not going to be forced into a corner selling at a discount to execrise their warrants." Sell at a discount to what? The shares are only worth what the market will pay for them. The only price they won't sell them is below the exercise price. High net worth individuals got there by being smart

[Redbaron2211]

When your selling your commons to exercise warrants at under $1 while Evotec is buying in Aug at $2.50 I would call that a discount.   Another thing to consider is sure there are 25 mil warrants but the exersise price is less then 1/3 of what sernova is trading at.  So even if all of those shares needed to be exercised it would only amount to just over 8mil of volume.   

[Stockfshr]

Unfortunately Evotec won't be buying shares at $2.50 on the open market. They will be issued shares. Perhaps they overpaid. Only time will tell. I am still bullish on Sernova's longer term prospects, but timing is key. At this time it is hard to justify the argument that $2.50 is the inherent value of Sernova.

[Redbaron2211]

Im not saying he planned this end but I do belive the company had invested interest to keep the SP stable around $1.5 until the deal was done.   Now that the company is cashed up and the market is thin its an open door to manipulate the SP trigger some stop losses and shake some shares free. If you want volume you need volatility.

[BioTeck]

Wish I had more free capital but not bad for a few days work! Nice work on the phone lines Selphie, you actually earned your paycheck this week.

[MustangSalley]

What about the stereo? Does it have Dolby or Alpine speakers ? Or are they the crappy Radio shack type that keeps repeating the same thing with IR and PR? One last thing ... how are the brakes ? Are they in good condition or squeaking or leaking brake fluid before a major news release... I mean sudden stop .

[donkeyfeathers]

I hate (hate,hate) to add to all the metaphorical shenanigans...but ok.  First off, the roughly 25% drop in SVA share value is relatively recent compared to the overall market swoon, but is now more in line what everything that MS predicted would happen as central banks started stepping in to quell the inflationary pressures upon us.  So this isn't just biomed stocks getting hammered

[woundedknee]

The way the price of gas is going, the gas will be worth more than the company.