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You're right the quote from Coca Cola didn't mention Aurora by name but the host Sarah Eisen said "is in talks with Aurora Cannabis to develop..." when introducing the story. Rewind it and you'll see. Regardless, there are several publications that already tied the two together in their stories today including Bloomberg. I think the PR dept of Aurora got permission from KO to release the story while Coca Cola agreed to say they are just talks.
New poster here. The Coca Cola news will be on CNBC in a few minutes. That's a national broadcast. They just said so. This is real.
You know everything I'm learning, I'm learning from posters here. From what OMID and others stated, I believe the set price settled at $.66 (avg closing price from days 35 to 40) which is higher than now of course. And I understood that to mean that instead of 748 shares for their $1000 per unit they got 1666 shares based on the set price and an $1100 value per unit according to the filing. I don't know what each investor has to do to convert during the 40 period. I believe that I read that if the shareholder doesn't convert, the B shares would automatically convert to common shares on the last day (80th day). So if any of them is wanting to dump those shares they'd be taking a loss right now. Do I have that correct? But why would they sell right here when there is good things coming for Amedica in the future.
It also wasn't clear whether they can sell the warrants now. I'm thinking yes, but those can't convert until $1.66.
Good question Hondobud. The filing seems to indicate that it's a 40 day period beginning around 7/05/18 was it? OMID was on it or very close. And it says but prior to the 81st day. Hmm so since there's around 20-22 trading days per month, maybe around 9/05/18? I really don't know.
The Series B Preferred Stock is convertible into shares of common stock by dividing the stated value of $1,100 by: (i) for the first 40 trading days following the closing of this offering, $1.4512 (the “Conversion Price”), (ii) after 40 trading days but prior to the 81st trading day, the lesser of? (a) the Conversion Price and (b) 87.5% of the lowest volume weighted average price for our Common Stock as reported at the close of trading on the market reporting trade prices for the Common Stock during the five trading days prior to the 41st trading day, and (iii) after 80 trading days, the lesser of? (a) the Conversion Price and (b) 87.5% of the lowest volume weighted average price for our Common Stock as reported at the close of trading on the market reporting trade prices for the Common Stock during the five trading days prior to the date of the notice of conversion. In the case of (ii)(b) and (iii)(b) above, the share price shall not be less than $0.48 (the “Floor Price”). Each of the Conversion Price and Floor Price is subject to adjustment is certain circumstances.
Yeah I get that. And a lot of people here get that. But many do not.
Because this board is becoming exactly what happens to a board when a company doesn't communicate with it's shareholders in a long time. You are good guy for always trying to answer everyone's questions.... And I do mean everyone's.
We have some things that should happen this month, good or bad.
1. A notice from Nasdaq of being out of compliance again could drop sp down a little more temporarily. Even though it would be meaningless.
2. Q2 earnings. Will they release them? I wonder what they'll look like?
3. A major announcement. Well I'm hoping.
Yes very interesting indeed the musings today about Ryan Long's departure. It could be a non-event or it can be a very telling signal. I don't see it as anything bad though. The lack of information is intentional; a building up to something. Have you checked out the company's website lately? There's nothing in upcoming events. Does that mean nothing is happening? Of course not.
Zimmer has been awfully quiet too. Have you noticed their share price creeping up before their earnings and conference call this Friday? Just curious musings that's all.
It could be. It could also be why the acquiring company may be waiting for a major event like Japan to further solidify quick adoption of the tech. They'd want to convince any skeptical shareholders.
About a month ago you posted an article that started with "It's been 25 years..." that talked about the fact that the human body rejects foreign materials.. basically. I think only one poster commented on your post, but that was actually a very important piece of research and should have caused a shift in this industry. It's amazing how long it takes to change things even in the light of new knowledge and information.
I see that it finally broke $.50 Since the huge price drop last Thursday to .56 the SP has been under pressure but seemed to have stabilized this week with lower volume and price at a support level. Volume went from 17,500 to now 221,000. It bounced off of .45 (for now). Help us out chart people. What is the next support level?
Warsaw, that makes sense. The other location is a corporate office.
I have heard that before; that downgrades mean time to buy. Also as you stated earlier, now that the FDA issues are settled regarding the Colorado facility, Zimmer can now tell the world how they plan to use their new spine headquarters.
I counted 49 million shares traded from 5/08 to 5/23 within a price range of $1.02 to $4.12. That was 12 days in May. From 6/28 to 7/12 was only 10 trading days with fewer than 2 million shares to bring the price down from $1.02 to $.56... Amazing. Is that what you mean by wash trading?
Yes indeed. This month would be great. I see that ZBH reports earnings and CC on the 27th. That's next week. I also noticed that at the end of June ZBH got two downgrades by two different analyst. One given them a $96 price target. They better do something. But I've stopped looking forward to events like that to hear merger news. It will come, when it comes.
42.64 million OS DAMN!! That puts it into perspective. Thanks for crunching numbers. It also puts into perspective how we got here. The 3/06/18 move of selling warrants at $2, killing the momo, and keeping the price cheap, leading to this super low pricing and ballooned dilution. Like I've said before, if we make decent money all will be forgiven of Sonny. I hope you and CL are correct about a $2 billion (or more) valuation or we're toast.
I hope you're right Hondo. That would help to limit dilution. And those events can't come soon enough. Japan approval, a partnership, buyout news, or some other major catalyst that none of us are expecting. Hurry up already. We're in July 2018 for crying out loud.
Hello fellow longs. This could be a big week. Many eyes are on this stock. We even had posts on Friday from all four of our A list posters (boston, OMID, CL101, and dp60), which hadn't happened in a while. I don't mean to leave anyone out. There are other good posters that contribute here.
So do we know anything about the B share holders? How did Maxim Group sell these units? Could it have been 100 investors that bought $150,000 worth of stock or 10 that bought $1,500,000? Then there's the 5% rule so I'm guessing more than 10. And is there a chance any will hold their shares?
Looks like July is shaping up to be a busy month. Good, because the silence has gotten old. Sonny did well for himself. The rest of us?..... not yet.
I'm thinking that they might already be debt free. I guess we'll find out when they report earnings in about 45 days.... or sooner.
Thanks OMID. I couldn't agree more. So you believe we're looking at final OS fully diluted at around 28M to 34M? Do you believe the company would need to announce a merger/sale before the shares are sold to the public? How else can they control where the shares end up? They can't end up in hands of the "bad guys."
Also do you still not believe that there could be a low-ball offer for AMDA? I know we longs love the tech and are firm believers in the future potential and what the value should be but.......Anyway at this point I'm ready for this to end. I want a piece of this and then I want to move on already. There are other things to invest in. Every investor here has a list of their next picks. I notice you've been spending some time at the message board of a certain little targeted radio-immunotherapy small cap. LOL I like that one too.
Maybe they'll finally talk about their brand new 101,000 sq ft Spine Headquarters. Or whatever. That's on them.
I would love to see the sale/merger/JVA come through Japan news. It can't come soon enough. It's taken very long. And we all concur that it's a done deal. It's not a safe harbor, or disclaimer tucked away in the filing. It's in their corporate strategy section.
On another note, Zimmer needs to hurry up with their plans too. This was announced yesterday
Zimmer Biomet Holdings, Inc. (NYSE and SIX: ZBH) today announced its second quarter sales and earnings conference call will be broadcast over the Internet on Friday, July 27, 2018, at 8:30 a.m. Eastern Time. A news release detailing the quarterly results will be made available at 6 a.m. Eastern Time the morning of the conference call.
And irrespective of our little company, Zimmer needs to placate their investors of what they are going to do the second half of the year. They sure built it up that something big was coming.
Nice find and it's only one week old. These two Japanese researchers Kitajima and Inada... is there another connection to them? I know we have several connections with Japan including the Kyoto Institute where Sonny spent some time and partners NKG, etc, etc.
Yes a potential 85% dilution of shares, but the dilution itself could give aggressors a chance to load up using surrogates or whatever method to embolden their position. The 1% would jump back up. That's why I'm starting to think that AMDA will not let that happen. They know what's at stake. They didn't bring this tech this far to give it away. Though chances seem small for a merger announcement at the shareholder's meeting, which is 10 days away, it sure would be awesome!! I'm really, really hoping CL is right about AMDA needing the $15 million to clean up the books and prepare for the merger.
I hope that you can do that, and everyone else who has the means to jump on an opportunity when it presents itself. Some of us might have to just hold our current position and buy a little bit more.
Another thought that came to me, you know how we assume the S-1 was a poison pill because some entity was amassing a large position to force a hostile takeover? Now was this a theory or a fact? Well what is to stop that same group or another group from buying a huge quantity of shares when/if they convert to common shares? It seems like we'd be in a similar situation, if not a worse situation because shares being sold can more than quadruple. And I remember that another thing mentioned was that AMDA can execute the poison pill as a "blank check." Does that mean AMDA would buy the shares to keep them out of the bad guys hands? It is sort of confusing to me how to safeguard the castle. I'm sure Sonny et al have thought about these things and have a master plan.
On a few sites, including here on IHUB, it shows that the OS is 7.22 million. On my trading account it shows 4.4 million shares. So some dilution happened? Then there's the B shares conversion. I hate bringing this up again, but I'm trying to prepare for what may happen and also to guestimate what the OS will be at the time of the merger later this year.
So does it look like there could be a maximum of 32.2 million shares if all B shares and warrants are added?
25 million + 7.22 million= 32.2 million
All because they had to do the poison pill maneuver. If this amount is about right, it stings more knowing that before 11/10/17 (reverse split) they had 36 million OS. We'd be almost all the way back to that amount in less than 9 months. Sad.
I know boston said that hopefully they'll call some of those shares back since they worded that they can do that in the offering. That would be nice. The smaller the OS, the more money for us.
Since AMDA is taking their lead from ZBH, I hope AMDA isn't the one telling Morgan or dentsply "hey we're not ready yet." This brings up another matter. Isn't AMDA required to report material information? If so why don't they say anything about approvals in Australia? Full scale CsC right? They have partners over there too and not a word; no quarterly updates...nada. If your theory about the 483 FDA approval process with Zimmer possibly being the reason for the delay, how long can that take? We have a shareholder meeting later this month, potentially a flood of shares that will hit the market starting in July, and Q2 earnings in mid-August. Can it possibly drag on that long? I know, it's a rhetorical question.
"In Amedicas case they are really just a R&D shop"
It took me a while to accept this truth. Your most recent posts reverberate this message and I think it is on point. What else can explain AMDA's passivity? Accepting this is more palatable than becoming angry, majorly disappointed, and hostile towards Sonny. Of course I'm speaking about myself, not any poster here. I just wonder if this was Amedica's purpose all along. Were they ever really going to be a real company, standing alone, toiling towards their own success? It's starting to really look like Zimmer set this in motion years ago to do all of their research and development on the cheap; at the expense of shareholders rather than on their own pockets. But I'm not bitter. I'm looking to still make some money here. AMDA said it themselves that they are looking to sell the company. I just didn't know that this is what it is.
So I'm wondering how they came up with the floor price of $.48. It couldn't have been some arbitrary number right? It must have been based on some algorithm. It seems to me that there is still a concerted effort to take the SP below a dollar. There are about 23 business days left before the 40-day mark. So around July 5th would be the 35th day when the daily avg would be counted. Do I have that right?
At $.55 SP it would be a $2+ million market cap. Absurd, especially when the company has $10 million cash on hand. Do I have that correct? It's a real question. I'm still a novice. But I understand that with than many shares hitting the market at once, the price could easily be driven down to 50% from where we are now. Without any significant news between now and then, that's what can happen. Now is that also a golden opportunity for all of us to load up? Think about it. Will we beat ourselves up later for not doubling down with borrowed, stolen, found money under the cushions?
Hey boston how's it going? So you think AMDA could be involved with this ROSA Knee from Zimmer? Interestingly enough it says 2H 2018 limited launch on page 9. And they say that they are on track. I didn't see the twitter feed by AMDA but this product does boast of quickness.
Ok thanks. And when you say Warsaw... it's Warsaw, Indiana their headquarters yes?
Hey boston I see that there are much fewer posts now that we're in a waiting period. So what is a 483? I'm unfamiliar with that. And what about July? Much appreciated.
Hello fellow shareholders. Ok so it's going to be dilution for us common shareholders. My question is do you guys now feel that the timing of the merger/buyout happening is sooner rather than later now that the prospectus is out? Or is it still very unclear? We saw the wording in the filing that the sale of the company (is) can be within their strategic approach. Does anyone want to take a stab at it? one month, two months, three months away?
Like CL likes to say 99% done, just waiting for the 1%... the announcement.
85% is that what it looks like to you? That would be F'd up. So would you be more concerned about the new shares ballooning the OS? So the effect would be felt in the event of the actual merger/acquisition right? i.e. 30 million shares or so divided by the settled buy-out price would give us all much less per share than what we would have gotten with only 5 or 6 million shares right? Or would you be more concerned about the SP going down into pennyland with the dilution? Either way it would be ugly and I too would like to know if there is any recourse for current shareholders. That would be blatant. We would need like an Elliot Spitzer kind of lawyer (when Elliot Spitzer was on his A game). Even if we shareholders weren't able to change the outcome, Sonny should be held accountable for destroying the lives of the people who trusted him. I sure hope that it doesn't play out that way.
I believe changes are coming into healthcare. I'm in mental health services and in this field the buzz word for a while has been evidenced-based practice (EBP). People are tired of seeing money wasted on things that don't work, especially when it comes to public funds. But in the private sector it's been a thing for a while too. I know that Google founders Larry Page and Sergey Brin are advocates of practices that are only based on data and scientific evidence. It mentions Google leadership in this article but I've seen them mentioned by name at other places.
Here is an article from 2011
https://www.nytimes.com/2011/09/04/jobs/04pre.html
Damn! And there it is in clear print on page 1. Just like you said. Man under normal circumstances people would be ecstatic about this. But because everyone is feeling despondent, crushed, betrayed, or whatever word best suits ones' feelings, it's easy to think that it probably means nothing; just typical words common on a filing.
Btw boston, I read all of your posts regarding the value based care and how that might also be impacting earnings and future earnings. Good job as always
Oh my bad it's just a statement of ownership not the S-1
So they posted the filing of the S-1 13g/a now and mention Alpha Capital being able to convert the maximum 427,000 shares at the time allowed. Is this what we were waiting to see next? I thought Monday the 14th was going to be the day, but oh well what's the difference.
boston and madg boy you guys sure love to battle. But I see that you have mutual respect for one another. That's good. Why don't you meet in person, knock a few back, and iron this thing out?
So boston, Peeteman, OMID what do you think of this explanation of a poison pill? I posted this earlier and was hoping for some input. The following is from an article from Wall Street Mojo
https://www.wallstreetmojo.com/poison-pills/
A “Poison Pill” is a popular defense mechanism for a “target company” wherein it uses shareholder’s right issue as a tactic to make the hostile acquisition deal expensive or less attractive for the raiders. This strategy also acts as a tool to slow down the speed of potential hostile attempts in future.
Poison pills are generally adopted by the Board of directors without the approval of shareholders. It also comes with a provision that the rights associated can be altered or redeemed by the board when required. This to indirectly compel direct negotiations between the acquirer and the Board, so as to build grounds for better bargaining power.
Ok thanks. Yeah that Peeteman posts good stuff. So having the players in place, he was referring to a buyout/merger?... I guess I could ask him. I googled "poison pill finance" and many articles popped up indicating that it's used in a rights offering to fend off a hostile takeovers. Very interesting. They balloon the price and even dilute to their own detriment to make the price too expensive for the aggressor. So I'm sure some company is trying to get their hands on this technology for pennies of it's true value. I shouldn't laugh but it's like in a movie, someone taking cyanide saying "I'd rather die than be with you."
Check this out
https://www.wallstreetmojo.com/poison-pills/