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PWC's words are only vague if someone wants to paint a completely false narrative that somehow a company that has had its assets liquidated and the proceeds from that liquidation will only cover a small fraction of the $80+M debt will somehow rise from the dead. Ain't happening, this company will disappear once the bankruptcy judge discharges the remaining debt and the equity (the shares).
With respect to this:
The plant was sold, it's gone. The tax loss carry forwards are now worthless since BioAmber has no operations remaining, the IRS would invoke Rule 269 of the Internal Revenue Code and disallow it.
They are not an SEC registrant and will not file an 8k.
Worth billions?
LOL - so, then, why'd BioAmber go bankrupt?
Nope. Worth about $400k.
They got the plant for $4.34M and can do anything they want with it.
Big time CEO uses a gmail account?
LOL!!
So a business worth $1.75B is merging into a penny shell???? And effectively giving ownership of the $1.75B business to the bagholders of that shell???
Utterly ridiculous.
And if they are successful at "realizing value," that value will be at or below the $408K of royalties they already offered those contracts or contractual rights (pick a favorite) to the buyer of the assets. Here's the court motion prepared to do just that once again that the asset buyer chose not to use:
https://www.pwc.com/ca/en/car/bioamber/assets/bioamber-033_092418.pdf
LCYB has lawyers that can write brand new contracts with all the suppliers, technology owners, whoever and whatever they need to produce whatever they want at the plant. They don't need the BioAmber contracts whatsoever.
Like it or not, they got those "contractual rights" by signing a contract. Semantics and word games don't change the fact the buyer of the assets could have had those contracts or those contractual rights (pick a favorite) assigned to them by paying the royalties due. Here's the motion prepared by the monitor to do just that once again:
https://www.pwc.com/ca/en/car/bioamber/assets/bioamber-033_092418.pdf
I'm talking about this, from the 10th monitor's report, which gives the remaining debt and explains the proceeds won't hardly put a dent in it:
And that does not in any way say that any payments for KERP (of which there weren't any because they didn't meet the program requirements) would not be included on the cash flow sheets, that is utterly ridiculous and false. They were justifying having a KERP program to the court, expecting they'd get a bid that would pay the secured creditors in full, with the KERP being paid out of the leftovers. It didn't work out, they got no bids from the SISP.
LOL
Don't you think that LCYB might also make their own contracts, either with those suppliers or with others?
And this was the motion prepared to have those contracts assigned to the buyer of the assets, provided they agreed to pay off the royalties that were due:
https://www.pwc.com/ca/en/car/bioamber/assets/bioamber-033_092418.pdf
Asset buyer chose not to take the contracts with the assets. The value of those contracts? About $400k in royalties. That's it.
WHY ARE PEOPLE POSTING UP LINKEDIN PROFILES OF PEOPLE WHO USED TO WORK FOR BIOAMBER WHO NOW DON'T?
The stock will be cancelled at the conclusion of the bankruptcy proceedings, shareholders will lose 100% of their investment at that time. This company is a shell now that the assets have been sold in liquidation. There is $80+M of debt to pay, and there are no operations, no income, to even make a dent in it. What happens to bankrupt companies drowning in debt after they've been liquidated?
The judge discharges the remaining debt and the equity (the shares), and the company ceases to exist. Happens every time.
Whatever LCYB needs or doesn't need to make corn sludge has absolutely nothing to do with BioAmber. There is no link there whatsoever.
As for their debt and other liabilities that is being paid from the $4.34M proceeds from the asset liquidation, the accounts receivable, and the sale of inventory, all that anybody needs to do is read the 10th monitor's report, all of it is summarized to show there's no chance that either the unsecured creditors or the shareholders see anything from the bankruptcy proceedings and the ultimate death of the company.
They can make corn sludge without those contracts. If they want the contracts, they could have them if they agree to pay the royalties currently due, roughly $400k. That's it.
And those contracts could have been taken by the buyers of the assets if they'd agreed to pay the roughly $400k of royalties that were due, but they chose not to. Had they done that, the 2 secured creditors who get some recovery would have had a few bucks more. Clearly the value of the contracts is being grossly exaggerated in an attempt to sell stock.
Here's an update:
They sold the plant and the other assets in liquidation for $4.34M. That's well documented and undeniable. The company is now an empty shell with $80+M of debt it cannot repay.
LOL
That's quite the leap, there, ciphering out that the plant ran at capacity from some accounts receivable information, just toss in a bunch of assumptions and a wish and prayer or 2.
Did you see the operating losses while the plant ran? Man, no wonder they never ran it at capacity and the company wound up bankrupt.
In your first picture, the judge is agreeing that the regulations and requirements for selling the assets at a price of $4.34M have been met, and nothing more, that is what that whole section is discussing.
The second piece supports numbers given in a forecast. The actuals up through the middle of March have been realized and documented.
Again, nothing to see here, assets are gone, company is an empty shell, $80+M they cannot pay.
They bought a company that had revenue, didn't they? So it wouldn't be - or 0 again.
Yes, those are the ones.
Know what the restructuring fees are? That's the charges for the monitor, PWC. They don't work for free.
Nope, it's all accounted for, all that anybody needs to do is look through the cash flow documents included in the monitor's reports.
Those royalties are coming out of the proceeds of the liquidation, the accounts receivable, and the sale of the inventory. If they'd been able to pawn those off to the buyers of the assets, that money would have gone to the 2 secured creditors who receive some recovery.
In other words, nothing to see here.
And PWC thought the buyer would want the contracts for those non-assertion rights, even prepared a motion to have them assigned to that buyer, providing they'd pay the royalties that were due for the time the plant ran in 2018:
https://www.pwc.com/ca/en/car/bioamber/assets/bioamber-033_092418.pdf
Problem was, the buyer changed his mind, and elected not to take them, could have had them for just ponying up the $409k in royalties. Guess those contracts aren't such a windfall after all.
The NOL's are worthless, BioAmber has no operations, and cannot be purchased to use the NOL's.
Except when they're not:
https://investorshub.advfn.com/uimage/uploads/2019/1/21/gsrdzba13.jpg
There were no bids from the SISP process, none.
Unfortunately, this "theory" has been proven false. There were zero bids during the SISP, and the liquidation resulted in $4.34M for the assets. That's fact, despite theories and incorrect estimates/projections by the company.
I'm talking about the forecast of enough money to pay the unsecured creditors, which was the very first document in the post I replied to. That forecast was dead wrong.
This company has no operations, and the IRS will not allow NOL's that are acquired purely to avoid taxation to be utilized. BioAmber's NOL's are worthless.
The NOL's of an empty shell are worthless.
What "sealed" documents?
If I were to accept at face value the claims of that CEO and that ridiculous website being touted as proof, I'd have to conclude one of two things:
1. The CEO is the worst businessman in the history of business for giving away ownership in his thriving and growing business to the bagholders of an OTC shell, or
2. The CEO plans to wipe out the standing equity in this shell with a RS so he can sell stock and raise money.
Sorry, tossing the BS flag. There's all manner of private Chinese companies selling their wares in the US, and this company can do the same. Ever heard of Huawei or Xiaomi? Xiaomi is now public on the Hong Kong exchange, but were private until 2018.
Just watching price action day to day, seems to be a flippers paradise right now. Front loading appears to have happened around the middle of November at or below $0.0008, profits were harvested once it popped above $0.007. In a channel, now, until flippers get bored or the RS is announced.
LOL
So, now there's a "Stalking Horse" that the monitor has not disclosed to the bankruptcy court/judge?
Once again, that forecast from last May was dead wrong, nobody bid on the company, and the assets were liquidated for $4.34M. That is a documented fact. The company is now an empty shell with over $80M of debt they cannot pay.
The NOL's are worthless, the IRS will disallow their use per section 269 of the internal revenue code.
Stalking horse . . . can't make this stuff up.
Not nearly as expensive as giving away the ownership of your company to the bagholders of the shell. That is what effectively happens in these OTC RM's with a large number of shares issued and outstanding like this one. Merge in and the bagholders of the nearly 2B shares are gifted with equity in a thriving business. It is a narrative played over and over, works for those who saw it coming and buy in the trips, notsomuch for those who believe that narrative and buy in higher.
Real companies that want to go public to raise capital and/or with owners looking to sell a stake in their company will do an IPO, and they'll get the proceeds from the sale of stock to the public.
The only reason a company "goes public" is to get access to the public stock markets to raise capital and grow their business. If they don't plan to sell stock, there's not a single reason for them to go public and become accountable to shareholders, much less the bagholders of a dead penny shell. They get nothing from the stock that is in the O/S and traded back and forth today, that stock is a legacy of the prior failed/dead business of the shell, sold into the market by that failed business, and the proceeds are long gone.
So, one of two things:
This is a hoax built by someone who has stock to sell, or, the company is going to sell stock after a RS to wipe the existing equity off the books.
$1B is conservative? LOL
There's not a single independent verification available on the claims of owning 100 companies, let alone $1B in revenue. That "Made in China" site is laughable for real corporate information, and any company with $1B in revenue would have multiple independent sites with information about them.
Plus, it is ridiculous to even consider that a company with even $100M in revenue (let alone $1B) would merge themselves into a dead penny shell and effectively give away the ownership of their company to that shell's bagholders.
LOL...
So now it's a $1B (revenue) company merging in and giving away ownership to the bagholders of a dead OTC shell????
Can't make this stuff up.
I don't care. They'll never be installed, even for a capital cost of zero. They're a hoax, pure and simple. They don't save anybody anything, neither the customer nor the utility. The whole narrative is false, all that BS about "recycling wasted electricity" is for those who don't have a clue about the distribution of electricity, and utilities and industry has gobs of folks who will recognize this for what it is, just like the guys in the video from Eaton.
Except that's all baloney.
There are no savings. This is a capacitor bank, and capacitor banks have no effect on the watts/kilowatt-hours that people pay for. If a utility needs a capacitor bank for voltage support in one of their substations, they'll buy a passive one from ABB or another HV distribution equipment supplier and install it, they've been doing that for decades.
This is a warmed over hoax. Power up a motor with no load on the shaft (a very reactive load, terrible power factor), measure the amps, then hook up a capacitor bank and voila, the amps go down. Unfortunately, it's all VARs/KVARs, and you don't pay for them, watts/kwh remain unchanged. But this "demonstration" gets foisted on folks with no sort of electrical background or understanding, and they are led to believe there are savings (this company's claim of 40% wasted electricity is pure BS), and they either buy one or invest in a company making one. This hoax has been around a long time, and all this company has done is add a computer to control the capacitor bank.
Here's a single phase demonstration of the hoax by a major electrical equipment supplier. The company's version is 3-phase, but this mock up shows exactly what the company is doing and wants people to believe: