Post by
rgonlyfactspls on Aug 25, 2016 11:26am
Cash is King at the moment...add to Dardani's observation...
...that ProMetic's burn rate is $22mil a qutr (from CIBC report) and the fact that they are paying an interest rate of $10.6% on 2015 loans and 16.3% and 21.8% on 2014 loan* (plus usual finder fees I assume). So ProMeitc is buying a company with $34 mil cash at pretty much the break-up price. Note: the annual interest savings alone on the $34 mil at 10% is $3.4 million. Now I better understand why Telesta's descript no longer include "focus on building shareholder value" at the end of the line. Open for competing bids...... *See page 64 of ProMetic's 2015 Financial Statements on Sedar https://www.sedar.com/GetFile.do?lang=EN&docClass=2&issuerNo=00004497&issuerType=03&projectNo=02464781&docId=3889734
Comment by
saltaja on Aug 25, 2016 2:31pm
Those loans are from Thomvest, and they are convertible loans. I dont' recall all the strike prices but the latest one was around $4.8. As long as PLI share price is greater than $4.8 when the loans mature (2021 if I remember correctly) then PLI will not pay a cent. If you belive in PLI's pipeline of drugs then $4.8 in five years is not a concern.