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No, unfortunately it has become increasingly apparent to me that Nic and the BOD will do a 1:6 RS first, possibly when the PPS hits at least $.40 so they can claim it is to obtain NASDAQ listing. Then if the announcement or the act triggers a PPS decline, they can clam up again; if anything just saying they were "surprised at the decline". Any subsequent PPS decline that disallows listing would be after the fact, which means the RS would go through anyway.
Soon after, they will announce a public equity financing, to the tune of maybe 10-15M shares at ~$2 plus warrants, perhaps simultaneous with the announced start of P2B, hoping to maintain PPS. That would theoretically net them at least $20M, which will tide them over until at least 2014. By that time, they will (hopefully, where they are concerned) have some sort of deal done and/or agreement to fast track 30063 that can finance PIII.
Honestly, I don't think NIC or the BOD care one iota about current shareholders. That has been demonstrated time and time again. It is especially apparent when you take into account that pretty much everyone at Poly owns absolutely "0" shares of stock and, therefore, have little to lose if the company is unsuccessful.
In my opinion, they'll do a 1:6 reverse split and an equity financing sometime within the next three months whether the resulting PPS will qualify them for NASDAQ listing or not. The mindset of Nic and the BOD doesn't appear to be affected by the PPS declines - they just want to continue down the road as planned.
Sort of like my moniker: "Damn the Torpedoes, Full Speed Ahead".
Perhaps I am confused. If the shares are sold on the open market, wouldn't that mean the new investors would then own just under 50% of the company? How does that adversely affect Poly ownership, other than further diluting present shareholders' holdings?
You, I and likely almost every Poly investor agrees with you on the need to partner, but what do the (some say boffins, I have my own descriptive word that I shan't use) at Radnor think? That is the question of the year! One can't be certain that they haven't just dug in their collective heels and are just as determined as ever to "go it alone". We can't do more than speculate; especially since they are keeping mum.
On that note, here's another what-if everyone can mull over:
What if they decide to RS even if it won't get them NASDAQ listing? A 1:6 RS would allow them to equity finance without pushing up against the 250M limit, and more than likely at, or above $1 PPS, even after the inevitable PPS decline.
I have to wonder at the similarity between Poly's pipeline and IBM's.
"They try to mimic what the immune system does: the polymer attaches to the bacteria’s membrane and then facilitates destabilization of the membrane. It falls apart, everything falls out and there’s little opportunity for it to develop resistance to these polymers."
That sounds eerily similar to the mechanism of action of all of Poly's compounds, both in-trial and in pre-clinical status. I have to wonder how similar the two technologies are? Does Poly have some basis for a patent infringement lawsuit?
There were a few patients who dropped out due to adverse events but it was a relatively small number. Even more significant, I think, are the patients, especially in the middle dosing arm, who apparently didn't show for their follow up and were therefor counted as failures. Management never adequately explained that in the CC and, although they supposedly revealed that at the shareholders meeting, the information was relayed second-hand by claimed attendees.
Since the only source of that info so far has been from board posters, it is suspect. Management remains publicly mum, despite urgings by at least some investors. Hopefully, they will get their heads out of their bottoms and release a more thorough analysis of the PII results.
Even more unfortunate that it takes an investor to decipher the results. It would have been far better if management had relayed it in the first place.
Oh, well. I believe an RS is definitely off the table. What would be the point? At this level, even 1:6 won't get them listed.
Whatever you think about the science behind Poly's pipeline of products, it's obvious management knew about 56's issues long ago. I have to wonder what the thinking was when they started the 1B2 trial for LMWH. It seems to me they would have already encountered the blood pressure problems in the first trial.
NASDAQ Capital Markets Lowers Initial Listing Requirements to Benefit SmallCap Stock Listings
The NASDAQ Stock Market received approval from the SEC on April 18, 2012 to lower its initial listing requirements for its Capital Markets listing tier. The stated purposes of the changes were to allow NASDAQ to compete with the NYSE’s AMEX listing and to benefit Smallcap market entrants. We summarize the new standards below.
The existing rules required that a company seeking to list its securities on NASDAQ must comply with a host of quantitative and qualitative initial listing requirements, including, among others, a $4.00 per share minimum bid price requirement. Under the new rules, a company that does not meet the $4.00 per share minimum bid price requirement may still list its securities on NASDAQ if it meets all other initial listing requirements and:
• evidences the $3.00 minimum bid price and qualifies under the Equity or Net Income initial listing standards, or
• evidences the $2.00 minimum bid price and qualifies under the Market Value of Listed Securities initial listing standard.
Under the Equity Standard, a company must show stockholders’ equity of at least $5 million, market value of publicly held shares of at least $15 million and two-year operating history.
Under Net Income Standard, a company must show net income from continuing operations of $750,000 in the most recently completed fiscal year or in two of the three most recently completed fiscal years, stockholders’ equity of at least $4 million and market value of publicly held shares of at least $5 million.
Under the Market Value of Listed Securities Standard, a company must show market value of listed securities of at least $50 million (current publicly traded companies must meet this requirement and the price requirement for 90 consecutive trading days prior to applying for listing if qualifying to list only under the market value of listed securities standard), stockholders’ equity of at least $4 million and market value of publicly held shares of at least $15 million.
In order to avail itself of the alternative minimum initial bid price listing standard, the company must demonstrate that it has net tangible assets in excess of $2 million if the company has been in continuous operation for at least three years, or of $5 million if it has been in continuous operation less than three years.
- I'm certain Poly won't meet the $750k income requirement, nor am I optimistic it will meet the $50M market value, Most likely, if they choose to apply, they'll have to maintain the $2 minimum price for 90 days.