Sirona Biochem Corp V.SBM

New Financing

[PeterG]

This is again a dark day for all of the trustful longterm shareholders. 12% interest per annum, many more cheap shares for the management. And on top of that, Howard will get a lot of cheap warrants. Pretty nice!! Good deal Howard, Michelle and Chris. Congrats

[emerald03]

Yup, more  inevitable dilution for us common shareholders, each share we own is worth less and less progressively, thanks to   deal negotiation  incompetence. 

[forhandlaren]

I'm not prepared to call the deal with Abbvie incompetent as I don't know all aspects. The milestones are not public nor the royalty rate or anticipated market share. That said, I was pretty upset about the upfront - far from my expectations. I think this deal was tailorized for a buyout, meaning that the future revenue stream is more worth than a big upfront now. But with the R+F

[lscfa]

Non-brokered offering. I suspect the terms were set by an interested institutional investor who wants in dirt cheap and at low risk.

[navajojoe]

This post has been removed in accordance with Community Policy

[lscfa]

You know nothing. Institution investors invest in nice round $250,000 chunks. SBM probably hoping to sell the debentures to 4 funds for $1 million.

[lscfa]

March 2014 - Sirona Biochem Corp. (TSXV:SBM) announced a non-brokered private placement of 9,230,770 units at CAD 0.13 per unit for gross proceeds of CAD 1,200,000 on February 25, 2014. The transaction will include participation from a new investor, AlphaNorth Asset Management.

[MirrorWorldMan]

Guaranteed dilution to pay interest and principal for holders of debentures/warrants. How else will it br paid? By future revenue? We all know the odds of that... So Howie is borrowing more money, issuing nore shares again, to pay for salaries.  All he knows how to do is dilute. Investing his own money at a high rate in his own company to pay himself and then issueing shares in the future to

[lscfa]

If this new financing goes to just a few large investors just how much more info are they getting than us retail schmucks?

[MirrorWorldMan]

Whoever new (if any) who comes on board will soon suffer the realization that we all have. Howie continues to milk a dying cow with costant drainage of resources and diluting a shriveled utter. You think when we are sitting at .085 he may start to think crisis management. 

[SleepyHoward]

True words. The question is what can we do again against howard verrico?  Is there a chance for us shareholders? Maybe everybody can write something on Twitter because everybody can read it and maybe they thing about it that howard is poison for the company

[lscfa]

You would think Abbvie would want its supplier of 1067 to be financially sound to ensure supply. Why the hell does mgmt beg Abbvie for a loan?

[lscfa]

Doesn't

[Pareto8020]

Why wouldn't they just BUY SBM out at this price and save themselves the $680M they will supposedly be paying out over the lifetime of the patent? Even if they bought SBM for .50 or a 1.00 they'd have the lightener and the whole lot of compounds for way less than royalties. 

[MirrorWorldMan]

AbbVie likes to do strategic partnerships with small companies to diversify their portfolio without investing all the own R &D expenses.  Purchasing the companies means they have to manufacture a bunch of diverse molecules with radically different development processes originating from multitude labs. Its cleaner to just be raw ingredients over time and sever any deal if things do not