Bioasis literature is not consistent with a buyout. Can this buyout rumour of US 35¢ + CVR be reconciled with some other scenario?
If there is a buyout in the works, then there is no point in Biaosis continuing to give guidance on NASDAQ, which is referenced in both the latest MD&A and in the current corporate presentation.
From Page 21 of the Q2 MD&A that was released 3 days ago: "
In December 2021, the Board engaged investment bank Ladenburg Thalmann to assist the Board and management to evaluate strategic alternatives, including potential mergers and acquisitions (M&A). In respect of M&A, the goal has been to identify accretive M&A opportunities and to pursue said opportunities to unlock value and liquidity for shareholders. This work is ongoing with the aim of securing financing opportunities and a NASDAQ listing for Bioasis."
From the current Corporate Presentation: There is a timeline on page 6 of the presentation, the "Anticipated Milestones" page.
On the timeline presented on that page, "
Uplist to NASDAQ" is shown to be either at the end calendar Q4, 2022 or in Q1, 2023.
Reconciling The Options If NASDAQ is still in play, then could we see oncology either being sold off or placed in a spinoff, with the spinoff being sold off. That would allow Bioasis to remain trading, to have some money, and likely to qualify for NASDAQ. If shareholders were granted one share of the spinoff for every Bioasis share they hold, then the shareholders would have a nice payday from the spinoff plus potential future income from the spinoff, and would retain ownership of Bioasis, which could keep ownership of all the other neurodegenerative diseases.
A scenario like that would be consistent with both the rumoured buyout of US 35¢ + CVR, and would remain consistent with Bioasis's stated ambitions about NASDAQ.
There have been a lot of questions and comments coming at me since yesterday. Something's got to happen soon and I like this scenario, which hit me because of the obvious contradiction between a buyout and a NASDAQ listing.
Here's an
older article from Forbes about CVRs. KayakerBC has also kept good material and offered good commentary about CVRs.
Of course, Bioasis in the latest MD&A talked about borrowing from Lind, which may happen, but wouldn't need to happen with a swell spinoff scenario.
I confess, I would think much more highly of DrDR if she and I both came up with this spinoff idea.
Goota admit, Bioasis has been touting itself, a lot, as a rare disease, neurodegeneration player, with not much mention of oncology. Further evidence?
And Cresence was and is a deal allowing Bioasis to call itself "clinical stage," also consistent with promoting itself in the big league offered by NASDAQ.
jd