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Lawyers don't make money with short cases.
It was postponed to late October.
Amazingly most on this board are engaged with discussions of R/S and other nonsense. And yet, not one comment about the absolutely disappointing Q2 results. No sales of radiopharmaceuticals or PosiRx.
It is unlikely that anything significant will happen until this SEC case against Pat is closed. Pat's request for a partial ruling on the O&D Bar was denied, and the next status hearing is on Aug-8-13. This cloud may also delay any investment into Positron's plans.
The 10-Q was an absolute disappointment. The only significant event that will change sentiment is sales of radiopharmaceuticals and PosiRx. How the market reacts to this SEC case remains to be seen.
This will all be decided on May-16. My guess is Rooney remains as CEO.
I suggest you all relax a little and let this play out.
This an e-mail from Pat Rooney:
Question:
Mar 7, 2013, at 8:22 PM,
Good afternoon Mr. Rooney.
Have there been any further developments with financing of the cyclotron project and launch of PosiRx?
I would appreciate any feedback.
Thank You.
Response:
Yes on both counts.
Im am currently in Europe on the cyclotron project and equally as important the supply of isotopes prior to our cyclotron commissioning.
We will state anything on both PosiRx and isotopes as they become official.
I understand this is not a great deal of info however it's all I can state at this time.
All positive as far as I can see.
Thanks
Pat
Consistent and profitable revenue growth will result in increased buy volume, an uptrend, and a move to a higher exchange. The reverse split may or may not even be necessary. There are plenty of public companies with 1Billion+ shares and a much higher market cap than Positron. Profitable revenue growth is the key measure of the success of Positron's vertical integration.
Management's $1.6M investment plus the addition of Conroy to the team are 2 very good reasons to keep buying shares.
If POSC wants investors and not traders, they need to produce revenue growth.
Thank you for the feedback. Positron has the plan, and hopefully soon they can arm their new COO with the financing to execute this plan globally.
The 10-Q clearly states there were no sales of Attrius, PosiRx, or radiopharmaceuticals. I am relieved that Positron has hired a COO with industry experience. They certainly need help.
Yes I agree, they are separate entities. However, the DTC is registered with the SEC and therefore legally connected to it.
I am merely suggesting that it was possible the DTC "chill" was imposed because of the missing form D submissions. A simple oversight by Positron.
http://www.sec.gov/investor/alerts/dtcfreezes.pdf
Chills and freezes can be imposed on securities for more complicated reasons, such as when DTC determines that there may be a legal, regulatory, or operational problem with the issuance of the security, or the trading or clearing of transactions involving the security. For example, DTC may chill or freeze a security when DTC becomes aware or is informed by the issuer, its transfer agent, federal or state regulators, or federal or state law enforcement officials that an issuance of some or all of the issuer’s securities or transfer in those securities is in violation of state or federal law.
The SEC requires a form D to be submitted within 15 days of a new offering. It's unlikely that Positron just now discovered that they hadn't submitted in 2009/2010. More likely, the SEC discovered this for them.
http://www.sec.gov/about/forms/formd.pdf
When to file:
An issuer must file a new notice with the SECfor each new offering of securities no later than15 calendar days after the "date of first sale" ofsecurities in the offering as explained in theInstruction to Item 7. For this purpose, the dateof first sale is the date on which the first investoris irrevocably contractually committed to invest,which, depending on the terms and conditionsof the contract, could be the date on which theissuer receives the investor's subscriptionagreement or check. An issuer may file thenotice at any time before that if it hasdetermined to make the offering. An issuer mustfile a new notice with each state that requires itat the time set by the state. For state filinginformation, go to www.NASAA.org. Amandatory capital commitment call does notconstitute a new offering, but is made under theoriginal offering, so no new Form D filing is required
Just a guess ... but this may have been discovered during the current SEC investigation, and the form "D" filings could be part of the resolution between SEC and Positron.
It appears positron is simply addressing the missed form D as required in rule 506.
While companies using the Rule 506 exemption do not have to register their securities and usually do not have to file reports with the SEC, they must file what is known as a "Form D" after they first sell their securities. Form D is a brief notice that includes the names and addresses of the company’s owners and stock promoters, but contains little other information about the company.
http://www.sec.gov/answers/rule506.htm
This is the article:
9/3/2012 12:26:00 PM
Positron pushing Gary plans despite challenges
Bowdeya Tweh, Times of Northwest Indiana
GARY | City officials want to finalize a deal with Positron Corp. to have a high-energy cyclotron and manufacturing facility built near Interstate 65 and 15th Avenue.
Positron's announcement about a Gary site comes at a time when the Westmont, Ill.-based firm is dogged by questions of whether it can earn a profit and CEO Patrick Rooney battles a lawsuit filed last year by the U.S. Securities and Exchange Commission accusing him of misleading investors in a hedge fund he managed.
Despite these issues, Rooney said via email that Positron will select a finance partner for the $65 million Gary project this month after being in discussions with "investment banks and capital centers."
“Our position is that we opened the door for them to locate in Gary and to use financing, but of course it's contingent on their ability to get a financing partner,” Gary Mayor Karen Freeman-Wilson said.
Posi-who?
Positron is a molecular imaging company that manufactures and sells medical imaging devices and radiopharmaceuticals, which are drugs that emit radiation and are used in procedures including those that enhance images of organs to make it easier to identify abnormalities and shrink tumors.
However, the 29-year-old company had an accumulated deficit of $112.6 million as of June 30 and has struggled to earn a profit, according to financial statements filed with the SEC. In its recent filing, independent auditors questioned Positron's ability to survive and said the company would need to raise revenue through product sales, collect revenue through bond issuances or collect funds through sales of stock.
Positron said its roots are as a research and development company, which has evolved to "a true business enterprise with a strong recurring cash-generating business model," a company news release said.
Rooney, who has been Positron's CEO since February 2009, said a 70 million electron-volt cyclotron would be the highest-energy commercial cyclotron in the nation. The cyclotron, which accelerates subatomic particles to greatly increase their energies, would be the centerpiece of an operation that could produce industrial and medical radioisotopes. Radioisotopes such as strontium-82 are in short supply, Rooney said, and are critical for use in medical diagnostic imaging and to treat diseases using radiation.
Region touted for company investments
Opening the Gary facility would return Positron to the region. It shuttered its Crown Point facility at 1195 Arrowhead Court earlier this year. Positron said acquiring a company earlier this year resulted in its moving the Crown Point work to Lubbock, Texas. The company disclosed in recent financial statements the owner of the now-shuttered office building is suing Positron, claiming it still owes $312,000 under the lease. The matter has yet to be resolved.
Rooney said Gary is an ideal location because of its access to trucking and air transportation and its proximity to Argonne National Laboratory in DuPage County and other entities to provide a strong technical base and quality educational and medical institutions.
As incentives, Gary is pledging to provide $15 million in tax increment financing bonds. The company would recoup $10 million under the New Market Tax Credit Program for investing in a low-income community.
Freeman-Wilson said the U.S. Department of Energy is interested in Positron's potential to produce isotopes and she's excited about such a company locating in the city. She said Gary will work with state and federal permitting agencies to ensure the facility meets regulatory guidelines in its construction and operation.
Engineering and construction of the facility would create up to 150 temporary jobs, and the facility would employ more than 50 people within five years.
In July 2011, the company made a similar pitch to locate a more than $50 million cyclotron and operations center in Noblesville. That city offered $8 million in TIF bonds with proceeds to be paid in four installments based on Positron's meeting certain investment benchmarks. Noblesville spokeswoman Cara Culp said Positron representatives contacted the city before sending out the Gary announcement, but she wasn't sure when Gary became a candidate to land Positron.
Fed agency concerned about CEO investments
The SEC alleged Rooney made more than $3.6 million worth of undisclosed investments over four years from a hedge fund he managed, Solaris Opportunity Fund LP, to Positron through interest-free loans and market purchases. The fund started in 2003 and Rooney, of Oak Brook, Ill., became chairman of Positron in 2004, according to the complaint.
The SEC also claims 80 percent of the assets in the hedge fund, which was supposed to be a diversified, long-term investment vehicle, are tied up in owning 60 percent of the company's outstanding shares. The agency claims Rooney breached his fiduciary duty to the fund, misused fund assets and misrepresented and omitted investment information to investors.
In an answer filed in February to the complaint, attorneys for Rooney said their client was not involved in wrongdoing and denied many of the SEC's allegations. Discovery is expected to be complete by Dec. 13, which is the date of the next status hearing.
Rooney said he expects a resolution to the matter in the near future and affirmed the case has nothing to do with Positron Corp. He said Solaris remains a significant investor in Positron.
© Copyright 2012, nwitimes.com, Munster, IN
No one knows for certain when the share price will reflect what appears to be on the horizon for Positron (based on news releases). Reported revenue on the next 10Q from sales of radiopharmaceuticals would be a good start (later this month). In my opinion, medical imaging is one of the key factors in reducing healthcare costs. Prevention is always less costly, and this company seems to have a good strategy to support the medical imaging market.
You missed the point of my comment. YOUR strategy determines if you buy or sell at an all time low. Tell me you bought AAPL at $730 and FB at $38. If your investment thesis is no longer valid, then sell. Most of the longs on this board likely believe that Positron's vertical integration will bring much greater value to its shareholders (as do I).
Agreed ... We all develop our own investment strategies based on facts and speculation. Then you simply watch the progress of your investment as events unfold.
The $1.6M investment by Positron management may be part of the $2M seed money for the cyclotron. Possibly, no compatible investors were located.
I look at short interest as a percentage of float.
The short interest is less than 0.2%. I would say it is not significant at all.
My guess is that Jason Kitten eventually becomes CEO of Positron, with Patrick Rooney guiding the business as chairman.
Is this of any value?
Posted by Zacks on Jun-14-2012:
OUTLOOK
We are downgrading our recommendation from Neutral to
Underperform and moving our price target to $0.00.
We initiated coverage of Positron in September 2011 with a Neutral rating reflecting what we believed was an
acceptable risk/return profile of the company at the time. Since then we feel POSC's risk profile has significantly
deteriorated as a result of a number of factors which has prompted our downgrade in the stock from Neutral to
Underperform. We are also removing all of our revenue and EPS estimates. Of particular concern are;
- POSC has defaulted on payables (as noted in our initiation report, this could trigger a downgrade)
- Lack of faith in management delivering on commitments or strategy
- Exhausted cash balance
- Lack of financing
- Revenue has been insignificant and well below ours and management's forecasts
Budax … I don’t use private e-mail.
~380 companies with annual sales of $40-$60M. ~130 of these companies have a market cap of $100M-$600M (2 have a market cap above $1B). Data was filtered using Stock Investor Pro.
More than 800 companies with a market cap of $800 Million - $2 Billion, with annual sales ranging from $0 - $36 Billion.
More than 80 companies with annual sales of $190 Million - $210 Million, and a market cap. of $0 - $3.5 Billion.
Once Positron is well on its way to achieving its sales target of $200M, considering all that its business model has to offer, a forward-looking market could easily value this company at a $1B market cap within 2 years ... IMO.