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I have been noticing comments that this plant is being liquidated for value next to scrap.
PWC in note 5 of the financials recorded a $70Million impairment charge that I am still trying to figure out on a nearly new plant that cost over $140M written down to $37 Milluon
liquidation value that was built near the end of 2015. and is nearly new.
This plant Iunderstand is enclosed from the weather and based upon this looks like an opportunity for the right party
They should have me done this a long time ago.
They could have done a long term sale leaseback of the plant and the equipment
to raise funds rather than diluting.
I was reading their end of year 2016 reposts and
everything looked rosy. They had a joint venture in China but I dont know what happened to that and the filings with the U.S.DOE for funding for a second plant dont know what happened to that
I was reading a market study report that the market for bio sucinic acid was 53,000 tons in 2013 and that in 2020 it was estimated to be 593,000 metric tons.
As this is the building block BDO to make bio
plastic
that is growing at a cAGR rate of 38 percent.
Europe doesn't not allow petroleum based plasticizers which uses our bio sucinic acid is a another growing demand market
The use of biosuccinic acid in polyurethane is another market.
and
I was reading the companies report in 2016
Where there seem to be on track and they were able to get production from 37 percent off spec production to 7 percent off spec production
I really amazed that we are below $.01 per share
and that no one has expressed a serious interest to bid for the company ,its assets and patents and contractual offstage agreements
Can anyone offer any other consteu motive comments as this has been bashed into the ground by the bashers,market makers and the naked shorts
How come on this good news the stock doesn't move up. I suspect the drag is based upon the following
I notice there is over 3 Billion shares issued and over 1 B in restricted shares
Any comments as to what we will move up.
I dont think Eno looks like a genius so far.
This com lo any would not be in this state
If they did not bleed the company with their high salaries and benefits and stock options.
They could have d ok ne a real estate sale leaseback an dc could have lo aid off their debt with a little left over for operations.
They could have done this when they had Mitusi as a partner to potentially stand behind d thks
to get an A r acted credit rating
But they kept on diluting at e BBC er lower stock prices
I see this company filed a form 8k for Mr Enos press release but could not open it to read it in the 8k
Looks like the stock has gone dormant.
Anybody have any idea of what their next move is or idea of what they are working on that will become a near term catalyst
There are several possibilities.
He could have wanted the stock to go down so that the stock can be our based cheaply by a proposed merger partner with a big wallet.
He might have wanted to scare the bidders to put the thought in their mind that the co.pany will be sold in pieces and without all of the parts it is not beneficial to any of the bidders to get them to offer a higher for those bidders that did not yet submit their bids in late.
Ge could have secured fu ding from a private company to take the company private so they could get the shares cheap when they make their t es under offer
In the cxrxf. Concordia pharm UK case the CAA process to over 6 months in which they had billions in debt and $326M in cash.
The debt holders and shareholders had a vote
Which brought the shareholders down to 35 percent and substantial reduction in debt .
In which they raised more cash
The stock trade at $8 on the NYSE even when it wasn't m as king money
The book value given for the stock prior to the stock offering was $1.41
PWC gave the fai value of about $1.60
The transfer agent has confirmed 129 Mshares as being issued and no long e employed by the com pop any
Assets are greater than liabilities by a longshot.
Three major debt holders are Comerica,THE Govt agency and Mitsui
Any reduction in the debt or in the shareholdings would require a vote by both parties and take months to get the shareholders proxies and debtholders consent for a reduction
In this case the company has DIp fin as ncing and is being sold as a going and operating business with z great deal of potential
The dates given by PwC makes no mention of having to take any votes by the vent holders as no ad shareholders
It does state that all bids will be in and there will be a closing agreement by a 7/31 and probably a month more to start the money transfers to all parties involved.
Since the company has been in discussions before and if so near the $8 range.
Anything below $8 and above $1.41 is a Steal
to get their corporate greedy money hungry juices dreaming of acquiring this company now and within 5 years have a Bill that on dollar comoany.
I t am hoping for the best for all of us.
I see this going two ways.
1. An outright buyout for all cash for our shares
2. An offer from a public company that is a combination of cash and equity in the parent company of traded publicly or they could combine one of their subsidiaries that is profitable in the same line of business to use the NOLS and this acquisition would almost be for free that could lead to a higher price
If Cargil wins the bid and buys them for all cash
they may or may not wish to be public
The second option may result in a higher offer since they dont have to borrow as much by assuming the debt and using their shares as currency.
It is going to be interesting if the MM will be able to continue their manipulation and the shorters
Will have to cover or they will lose their pants.
If they drop it again Iwill be looking to buy more.
U.S.law for NOLS is carryback two years forward 20 years
I was looking at the Canadian tax law which provides for NOLS to be carried back three years and forward 20 years
It provides for various NOL preserving structures such as amalgsmaions between Profit Co and Loss Co. and other structures such as borrowing g money to pay off all the debt
Though some maybe assumed. This can potentially split to pay off debt and to pay the shareholders for their stock and the acquiring gets a bank j terest deduction
Mr Eno is a M&A specialist and as a shareholder
has t hgh e same I terest us as shareholders
BIOAQ has $200 M in NOLS
This helps to boost the buyout price in addition to the real estate plant and patents and customer list and revenue contracts for sales to customers that have increased to 80 customers in 17 countries
I think that the company was slow in execution
Concentrating on building and operating the plant an working on R and D without the revenues to support the high overhead of the company with big saleries. and stock options.
Their sales department took too long to get customers into the revenue stream with test and pilot tests for customers and etc.
Management failed to perceive and recognize
That the stock price was going south as well as
funding options becoming more and more limited as a result of continuous negative cash flow
The last stock offering was disastrous at a very low price
Tthe clock ran out in trying to do a joint venture with the Chinese and other parties who were slow to the dance.
Sevveral companies have have gern discussions but no takers.
With their back to the wall this was the only way to attract serious bidders be CD abuse if this lasted another year the company have been in liquidation with no remaining asset value to sell
In mr Richard enos bio it states that he specialized in Mergers and Acquitions and worked for Arthur D.Little an CChevron
In the chemicals and biorechnology areas
I think when I read the BIO of the CEO Mr.Eno
Has had past experience with his previous company with such proceedings as bankruptcy and CAA filings and resteucturings so Idont think he is a neophyte in this area and possibly may have some input recommendations to the judge though not decisive to making a decision
For Billion companies the acquisition of the plant that cost $145 to$185M plus expansion approvals with govt built in is a no brainer ,together with and increasing revenue and customer base that is what is called an accretive revenue acquisition added with the 270 patents to produce additional chemicals and $200 M in NOLS would be a writeoff for a Billuon dollar company because they can spread the higher acquisition costs amongst all the assets
and get the company for almost nothing.
This does not include the two year ti.efrane to build a new plant to get it up and running,the time value or present value of money and the fact that the plant is located where the supply of their feedstock can be obtained more cheaply than petrochemicals . Looking for a buyout price over $1 plus to $5 or $6.
I dont know if the $1.65 included the big impairment charge or writeoff they took
But I think that this value was given as a guidepost for the judge and also for the bidders
as to the current fair market value of the company.
AS such that bids below this level would be considered.m negatively and anything above this level would considered positivrly.
Now there a number of bidders and that is a positive situation for us shareholders who are long. and akin to an auction to the highest bidder.
I remember a suction story in New Hamphire
when a city slicker asked a local to bid up his items in the auction .The local replied "what do you think Iam stupid Iwould be bidding against myself and will get stuck with the stuff and have to pay for it and get thrown out of here if I couldn't pay"
I see the 137 million shares outstanding
Ti thought someone checked with the transfer agent that it was 129 Milluon previously
I saw the 1.8 M trade on my screen as a red transaction. Was that a buy or a sell that the shorts are covering now or are they trying to instill fear to drop the price down to pull out any stops.
This stock goes green for three days and then goes red for three days.
It is almost a certainty that we will close green for the next few days just prior to a buyout or bid announcement.
Dont think the shorter can keep the stock down past this afternoon.
I just got another 40,000 shares at $.0655
Shorters Bewate !
The buyout price will be over a $1 if a big U.S.player treats this as an asset purchase and steps up the cost basis of the acquired assets
and gets a bigger write off than what is on the books today under Section 338 of the U.S. tax code.
Almost one third to to forty percent would become a writeoff for U S. taxes in the first few years.
This would result in an increased buyout price over $1.
As I explained previously an asset for stock sale under Section 338 of I.R.C CODE the assets are stepped up basis with the purchase price spread over all the assets.
This results in a big tax write off in which the cost of the acquisition would be written off right away in the first few years .
For a high taxpayer this acquisition would cost next to nothing.
This scenario will result in a higher acquisition cost or stock price.
If it is for cash there will be cash tender offer for the stock.
If is for an asset for stock exchange we will get shares of the new parent company that maybe on the stock exchange and can either be sold or held
I just put sell limit orders for half my position at $5 and the other half at $8. So they can't steal my shares in my margin account
SHhhhh! I'm still trying to buy a lower prices
with the shooters with their negativity.
This stock has a floor around the last offering price of $.055.
The price target can be what the investors perceived it to be starting at $.10,$.20,$.50,$1.00,$2.00,$3.00,$4.00,$5.00.
Anything above a $1.00 dollar is a homerun multibagger and anything above that is a life changer.
Yes the CAA was more favorable to shareholders whose position was reduced to 35 percent from 100 percent but it Wherwin the debt holders got 65 percent to alleviate the $ 3
Billion in debt burden as a result of drug acquisitions whose revenue streams got reduced dramatically as a result of generic drug competition.
THE debt holders suffered a haircut
The shareholder got a haircut
The company was not liquidated for a total loss.
Today the company is alive and well and out of CAA. and selling their cmgeneric drugs
and survived going over the abyss
At this juncture I think a buy under $.08 is a steal .If it goes down again I will be adding to my position
I think that it depends upon the situation. In this case with CXRX Concordia a generic pharmaceutical company recently in CAA
In our case assets are greater than liabilities
and thus there is need to affect shareholders.
In the case of CXRX a generic pharmaceutical company that was in CAA there was
Overwhelming debt in the billions and revenues
That could not support it and about $326 M in cash.
Now they were able to get out of CAA with reduced debt that they can handle and the shareholders position was reduced to 35 percent
I estimate an offer between $ 250 M to $500M plus if there is a bidding war.
Price per share between$2 to $8 would be great and life changing.
I would think that if the didnt exercise prior to the b as bankruptcy filings that went be able to exercise.
I remover one company that had warrants that was going to do a major dilution and the company announced a 5 to 1reverse and
It seems like it prevented them from exercising the warrants for the smile shares
I think you are wrong this company has a lot going for it.
1.assets land building and operating plant that can be expanded
2.Rwvenues at 25 percent capacity
3.A growing customer list
4.$200 M of net operating losses
5 mmm.270 patents for three biochemical with
The production of only one biochemical with the potential of $1Billuon in revenues for all three biochemicals
6.Acompetive cost advantage of corn over peteochemical costs.
7 ..friendly governmental support ,loans, Grant's for creating jobsite and etc fo fe a green biochemicalcal production center
8.possible carbon credits
Many years ago I handled the acquisition of a telephone switch company for $1.3B in exchange for stock .This company had about $100Min revenues and a lot of goodwill and patents. Under Section 338 of the internal code a spread the cost over the $1 3B Cquisition over the assets the real estate consisting of the plant and assets. Now get this because the acquiring company paid big taxes the acquisition saved them almost $500 M in U.S. taxes
I can this happening here a potential high price can be offered. and to a Bilkuon Dollar company it would be chump change and a write off in the very first year
.
.
Many years ago I handled a $1 3 Billion dollar
Telephone switch company in which the companies assets were mostly goodwill and patents.
I still dont understand who is naked shorting thks stock hoping that it will go to zero.
Can anyone figure the rationale.
Have they bought so much long that they are hedging their position by going short.
If this goes up their short position will be underwater and a total loss.
I never use imargin on Oct stocks only when I need the leverage on better listed stocks and selling calls.
It maybe questionable but this is a cash margin account and Iam taking no chances for the MM to use my position to short. Ihave over 300k shares
What are 911 trades and what evidences a 911 trade.? Did this happen today?
I just put in a sell order for my entire position at $5