Sirona Biochem Corp V.SBM

Financing

[tylerreddick]

SBM "management" has claimed they have been trying to get non-dilutive financing, but we all know that is a fantasy. 

If they are going to do a share issue, it would be nice if they would offer it to existing shareholders, those who have paid the price for standing behind the company all these years. But that is probably a fantasy as well, as Howie will take the easiest route. And if some "fund" or other vulture outfit gets the inside scoop that points to profitability, they will be more than anxious to fill their boots at our expense.

But we need a solid financial backer to get GlycoProtMim to market, because without that, and without Abbvie getting off their keesters, this company is in big trouble. Howie holds a good chunk of our debt, so could take SBM private in a bankruptcy (although I wouldn't want to be the guy trying that play).

Probably the best scenario would be to sell 50% of the net profits from GPM, which would finance a lot of other potential products. Yes, that would cut our potential gain in half, short term, but half of a lot is infinitely better than all of nothing.

For those who have held SBM for years, holding for another year to see where we go is a pretty easy decision, at least for me. I have seen little pizzy stocks like this change people's lives, so don't discount the possibility here. JMO

[Turtle4]

GPM is the only active ingredient that works really well. Everything else has failed or is selling badly (tfc1067). I would rather wait longer (smaller product launch and possible supply bottlenecks) than give away a high percentage. The big mistake was to hope for high sales of tfc1067 instead of securing funding for GPM with a high upfront or complete sale of the tfc1067 patents.

[tylerreddick]

There have been a lot of "big mistakes" by management, but SBM doesn't have the money for even a "smaller" GPM product launch, unfortunately. So we really have no choice but to give something away.  Besides, if we don't go big on GPM, that would just mean more years before profitability, and the share price would remain in the dumps. I doubt anyone has the stomach

[Pandora]

My humble opinion is that AbbVie(Allergen) is one of the larger distributers of a competitive product to TFC1067 and by getting the agreement with SBM for the distribution of 1067 they can curtail it's distribution point while making good money on it's existing product. Who knows how long it may take for them to decide they need a new avenue by introducing TFC1067 and thus losing some

[lscfa]

https://www.prnewswire.com/news-releases/skinmedica-launches-even--correct-301721744.html#:~:text=SkinMedica%C2%AE%20Even%20%26%20Correct%20Dark,the%20look%20of%20dark%20spots.&text=SkinMedica%C2%AE%20Even%20%26%20Correct%20Brightening,and%20uneven%20tone%20and%20texture.  

[Pandora]

So it looks like SkinMedica is an Allergan/Abbvie company with worldwide high selling products and to me, as I suggested, there is no need for AbbVie to introduce the TFC1067 product. It appears it is in their best interest to just keep it on the shelf and I don't think it is costing them a large amount to do that. When making deals there is that old saying "I've been Snookered"

[lscfa]

Many firms think a JV is a non-dilutive option but giving half the economic interest away to a partner is still dilution.

[tylerreddick]

They KNOW that a JV is dilutive, they just THINK their shareholders are stupid. But what choice do we have?

[lscfa]

What these bozos should be doing is setting up a 100% owned subsidiary (e.g. Sirona Laboratories Inc.) that holds an exclusive worldwide license to make and market GPM products. Then seek equity investors for it so that the equity can valued at a reasonable valuation instead of the current ridiculous SBM share price.