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Foxwoodsfan, Thank you, as always.
I read every post and appreciate any DD posted.
Just haven't felt like posting much lately. Sort of feel completely beat up.
The company, the PIPE, or Chassman/Blech are the only logical sellers.
Your guess is as good as mine as to who is buying the shares. Maybe Swifty has a big-pharma friend preparing to take control of the company. For a multi-millionaire, or another company, it would not cost them much to buy controlling interest at these prices. At .0005, someone could gobble up 2 billion shares for $1 million.
Hi Drifter,
My understanding from the last 8K that was filed was that 2.45 billion shares had already been put in the OS, and about a billion shares were being reserved for the PIPE to convert 10% of their $7 million loan to shares.
I could be very well be wrong in my assumption. Maybe I took it the wrong way. My record of guessing correctly about such things is not that good.
So if that is the case (some PIPE folks converting and selling), the big question is - are they taking a blood bath selling at a loss, and if so what do they know that we don't?
Or - did they get their convert price lowered again, and like most everything else, it is still a big secret to us common shareholders.
MM,
Unless they lowered their convert price again, and we have yet to be informed about it.
if that is the case they are willing to loose about 50% of their investment
Thanks lmf. Seeing the slides would be great.
$1.4 Billion Effort Seeks Eradication of Malaria in 7 Years
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/25/AR2008092501815.html?hpid=topnews
5:15 PM EDT.
Only 3 possibilities I can think of.
1. The company still has a few shares they can sell.
2. Blech/Chassman (where are their SEC forms?)
3. Some of the Basu group (where are their SEC forms?)
Thanks for the reply.
Expect this to actually start heading north in the next several months, unless they are really out to screw the common shareholders.
Yo FIAT,
How is it going?
So did the PIPE get a lower convert price we have not been told about yet? Or are some of the PIPE folks selling at a loss, well below their .0007 convert price?
Questions in reply to your statement:
IMO, the shares are from the PIPES conversion as delineated in the last 8K.
Does the company still have a few shares to dump?
Or did the PIPE convert at much lower than .0007?
Or are a few traders forced to sell to meet margin calls?
Or...???
I'm sure it would have a much better effect on the stock price than the currently scheduled speech.
Surprised no one posted this yet.
http://sicklecellblog.blogspot.com/2008/09/another-nicosan-testimonial.html
Good morning Raven.
Yes, I guess a lot of the posters here are full time traders and have much bigger fish to worry about today.
I wonder how far we are from another 1929 scenario?
Good morning! Where is everyone?
Just peeking in while on the day job.
Agree that is a possibility.
It is Swift's group getting the voting shares, so I doubt they getting the voting power to get rid of him.
3. What was the real reason the PIPE converted to shares?
I can think of 3 possibilities.
They are afraid a group of common shareholders will try to force Dr. Swift and team out, and want to convert 10% of their loan to shares so as to have a majority of votes if that happens.
Or, the pps has not gone to .0001 like they want, even with the dumping of the 500 million shares, so they want to dump another billion shares to lower the pps, so they can once again lower the convert price of their remaining 90%.
Or it gives them something to waste their time on, instead of working to increase production and sales.
A year or so ago the OS was about 1.65 billion.
Swift said in the conference call that the OS was about 1.95 billion, a 300 million increase.
The latest 8K says the OS is about 2.45 billion, another 500 million increase.
Figuring they got roughly .0005 per share, that translates to $250,000 since the conference call.
I wonder what that money was spent on?
we sure wish we knew the answer to swift's intentions.
Is anyone else surprised how quiet this board has been with the 8K filing. A few posters and that is all.
Usually a filing like that would have this board buzzing all weekend.
I guess most folks either gave up hope or left.
Hi Elis,
Maybe there is not a provision to lower the convert price if the share price goes lower than their current convert price.
Maybe that was just an mis-understanding that I assumed, thinking they protected themselves from a lower pps for an extended period of time.
I'm pretty sure that was spelled out in the forms filed with the SEC, but I do not have those readily available.
I am not lmf, but I think that is the big question everyone would like to have answered.
I'm afraid that only Swift and his close friends know what his plan (agenda) is.
It is a real shame that such a promising company a year ago has been destroyed like this.
One thing to keep in mind is that the PIPE's current conversion price is .0007, so any shares they pick up n the free market are cheaper than their convert price.
Unless of course the PIPE plans to ratchet the convert pps even lower, in which case I doubt they would be buying from the free market.
This latest news could be an effort to force the pps lower long enough to allow the PIPE to adjust their convert pps again.
With the recent trading, the pps may not stay low long enough to allow them to ratchet lower.
Maybe they know sales will be increasing and want to ratchet much lower before any good news leaks out, sending the pps up.
Personally, I do not know what to think. I am not recommending buying, selling or holding. That is up to each individual to determine based on the risk they are willing to take.
Yes for the last time scientist who are greedy are a DISGRACE TO ALL MUMANITY
Just an observation and opinion. I think in most cases it is people other than scientists who are the greedy ones. Scientists are usually very involved in their work and care more about the betterment of the world, than getting rich from it. It is more likely management and investors who are the greedy ones.
MM,
If a CEO was making progress and was going to produce huge revenues for the company, I'd gladly pay him and his team millions of dollars.
It seems to me Dr. Pandey was on the right path. I agree he made some mistakes (just like most every one of us do), and he realizes that now. Hopefully he learned from experience and won't make the same mistakes again.
From what I've seen of Dr. Swift, I am ready for someone else. How many mistakes has he made? Or maybe he has an agenda, which does not include us common shareholders. Or maybe he is being paid off very handsomely by big pharma to destroy Xechem. Who knows why he has destroyed a company that was on the verge of huge success a little over a year ago.
Dr. Pandey might be able to salvage the company, and once the company is back on it's feet, we can get a real CEO, and retain Dr. Pandey as the scientist he is.
We need someone who can take off running, not someone who has to learn all about the company, Nigerian government, etc. before being able to make progress. Dr. Pandey already knows the company inside and out.
Supposedly Dr. Pandey can get financial backing to revive the company, whereas that financial backing is not willing to loan the money to Dr. Swift and team.
I suspect they are afraid of a shareholder takeover and need to convert some of their shares so they have enough voting power to prevent a shareholder vote from outsting them.
Elis,
Those calculations are reasonable and make sense. 1,060,000,000 x .0007= $742,000
It may be they are converting 10% of their shares so they have a larger voting percentage.
If a shareholder uprising takes place they want to make sure they have a majority of the shares to keep control. They may not have that now, especially with 800 million shares sold by the company in the past year for operating expenses. ( 1.65 billion to 2.44 billion shares).
minimeee,
I thought of that also.
The PIPE converts 10% so as to drive the pps to .0001 and then are able to lower the convert price of their remaining 90% again giving them almost total ownership of the company as far as number of shares is concerned.
Maybe it is their way of diminishing Dr. Pandey's percentage of ownership so his voting shares are a much smaller percentage.
The shareholder uprising just might be a big concern to Dr. Swift and crew and they are doing everything to thwart it.
With this latest 8K, I finally decided that Dr. Swift has had enough time to show us that he is making progress.
Up to this point, I have been dragging my feet about getting on the "bring Dr. Pandey back" bandwagon, wanting to give Dr. Swift a chance. I am now fully behind bringing new management in, be it Dr. Pandey or someone else.
If anyone is concerned about replacing management and hasn't already contacted lmf1264, I urge you to do so. Thus far, response to his request has been much less than expected. Maybe that is just a realistic response showing the number of true longs here vs. traders. But if you haven't already, go ahead and contact him.
I believe the $747,000 is 10% of the $7,000,000 plus what must be $470,000 accrued interest for a total due to the PIPE at this time of $7,470,000.
No I believe it is 10% of the debenture principal amount of $7,000,000 or $700,000-not $74,700
ElisComing,
I agree:
they should rip up that infernal agreement that they themselves wrote...and accept their original fair agreement of .0175
Everyone would then get a very nice profit, including the PIPE investors due to so many fewer shares.
It is said not to be too greedy when investing. I think the PIPE agreement is a prime example of how greed destroys you.
In that case, XKEM stock should be $100 per share by now then. LOL!
I think ElisComing answered this pretty well.
Once they convert they would no longer be bound (or protected) by the loan agreement - i.e. no longer be able to ratchet their pps lower.
Also, I think once they convert they will kill the pps totally, and probably not be able to find many to buy their shares, unless the company gets some significant net profits.
Not sure of the exact time, but I believe it to be more like 2 years ago the company asked for the AS to be raised to 5B shares. At the shareholder meeting it was discussed, and the company agreed to not authorize more than 3.5B shares without shareholder approval.
You might be confusing this with the shares the PIPE hedge fund would be entitled to if they convert their loan to shares. Not sure of the exact figure, but that would be 10B shares. ($7,000000 loan with a convert price of .0007).
That is still a big, unanswered question as to how they will get approval to increase the authorized shares to cover the loan agreement, which states the shares must made available when needed.
They did say BK was a possibility.
My guess is that is somewhat below a 50% chance of happening - just my gut feel, or maybe what I would like to believe.
That leaves a somewhat better than 50% chance of the company succeeding.
All the above IMO.
That is the truth. So many opinions are posted. No one knows the real deal until the company says so officially.
I agree with that also. I doubt we will see a RS.
Maybe the strange trading was due to someone noticing the big volume and deciding to jump in at ask while someone else was unloading at bid and under.