Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
These proceedings will pay a small fraction of the secured debt, and none of the unsecured debt or other liabilities.
Take heed, shareholders get nothing, and will lose 100% of their investment in this stock.
https://www.investopedia.com/ask/answers/06/bankruptpublicfirm.asp
LOL
"Massive speculation!"
No, it isn't speculation at all.
This company is an empty shell with massive debt that it has no operations nor sources of income to pay.
What happens to companies in bankruptcy proceedings with massive debt and no money to pay?
The judge discharges the debt and the equity (the shares) and the company disappears. Every. Time.
"Safety" isn't found in the PWC documents, they've been very clear, all anyone needs to do is read the last 2-3 monitor's reports. All the "safety" is constructed through little snippets, parses, and word games while ignoring the whole of the documents and their direct meaning, and it's all done in order to shift the stock onto new bagholders.
Shareholders will lose 100% of their investment in this stock.
Only 80k warrants moved yesterday, though that may be a function of the PPS. Still, while the math is easy to see how they can profit though shares appear below their cost, it is also hard to see if demand for the warrants is so low. Of course, that reflects a lack of confidence in the PPS going up to where those warrants are "in the money."
The move to $3.04 was nothing more than the typical OTC play moving on hype and fluff. And, just like those typical OTC plays, it didn't stick. All this history of what the PPS did in its spikes is irrelevant, and real investors, people who do proper due diligence that includes consideration of what the company actually achieves, know that.
The company is on NASDAQ, for now, and will have to perform. There's no way a fluffy PR about the latest "partnership" program the CEO has found and filled the forms out for will move the stock appreciably. It will be a rocky road until real revenues (above those that were purchased in the SC acquisition) and growth are delivered. Until then, enjoy the free haircut the CEO has given the faithful longs.
And why would anybody care what the price action was? It's currently less than 1/2 of it's post-RS price now that the dilution has begun. Those that might have bought some of those shares @$17+ are probably wondering where all the institutional investors that were going to run this up to a $2B market cap are.
No, that note was not included, the only notes included (along with the associated equity purchase agreement and security purchase agreement) were the newer ones entered into in February of last year.
There are 2 listed as outstanding as of the last quarterly, and only the 2nd of those was included in the restructuring:
https://backend.otcmarkets.com/otcapi/company/financial-report/204208/content
Yeah, and as has been stated several times, the NASDAQ investor will check the books, and VERB's are horrible. The "disruptive tech" stuff is fluff made for the OTC, there'll have to be some real live revenues, growth, profit, for VERB to stick on NASDAQ. I've seen several waiting for a new round of hype/PR's, but that dog won't hunt on NASDAQ.
Interactive video is not nearly new, it's been around for years, way before the CEO tried out for American Idol.
They stated directly the DIP lender had been paid off, now, didn’t they. They did not say directly that KERP had been paid because it hasn’t, not a single penny. Know why? Because the secured creditors have not been paid in full as the requirement of the program and the judge’s order states directly.
And whatever the monitor meant by “amounts owing that are subject to the KERP charge,” it does not mean what you’re suggesting. That is fact.
It does not.
There's this weird sentence the monitor made that "amounts owing that are subject to the KERP charge have been paid," and Herculean efforts made to say that means all the secured debt has been paid (along with the KERP), but that is patently false, the secured creditors are hardly getting any payments at all. The secured creditors get paid in full in cash in order for a KERP payment to be made, and they haven't. That's undeniable.
VERB is not undervalued whatsoever, not even close. 4 years of selling stock and revenue from their signature products was $32k and the path looks like it won't be any better for the majority of this year, if not more.
When does the board approval for the other RS expire?
And, your logic, not mine, would suggest that all those folks, around $40M worth of debt, have been paid in full somehow with $4.3M. Must be like that fish story I remember from Sunday school.
Whatever the monitor meant with that wording "amounts subject to the KERP charge," they did not mean the secured creditors have all been paid (heck, they were still arguing over the crumbs a couple weeks ago) and did not mean the employees were paid their KERP bonuses, because they weren't.
If there is any interest in the facts, then click those two links for the motion and order for KERP, and especially pay attention to the subordination of the KERP payments to the DIP lender and all secured debt on the page # I referenced. Further, all anybody has to do is look at the cash flow sheets included in the monitor's reports to see there has never been a payment made for KERP.
Wow.
Has to sting a little.
Reading through, they expect $18M if the over-allotment isn't exercised, and will pay SC $15M of that, pay the "loan shark" $2M, leaving $1M to pay for all that neat and groovy stuff that's supposed to wrap up and launch in Q2. That means no revenue in Q1 (not surprising, since the CEO has been working on the stock and apparently not the health of the company), none in Q2, and maybe a little in Q3. And, yes, I know that SC business will show their revenues in that period, and that's fine, but SC was a stretch as a $25M business/market cap.
If there is growth in Q3, it won't be seen by NASDAQ investors until mid-November. That will sink in one day.
No, it isn't incorrect at all.
Once this completes in CCAA, after the checks are written and those creditors get their partial recovery, the proceedings return to the US bankruptcy court. What will be returning is an empty shell (it is, and there is no denying it) that will still have $80+M of debt and no operations nor sources of income to pay any of it. That bankruptcy judge will discharge the remaining debt and the equity, and the company will cease to exist. That's what happens. Every. Time.
And all this fluffy stuff about NDA's being used to keep some transaction for the empty, debt ridden shell that is so lucrative to pay off all that debt and give shareholders some recovery away from view is pure BS to sell stock, nothing more. Every upcoming process or transaction has been disclosed, and when there was an NDA or a court seal to keep some detail of those from being immediately disclosed, it was stated in the appropriate documents. The bidders signed an NDA to get access to the document room, the bid sheets from the liquidation were sealed until the sale was approved by the judge, etc., but those processes and transactions were otherwise well known to be happening.
The KERP program was approved by the judge, and a version of letter was sent to the employees who were in the program. A payout of KERP required that the DIP Lender, Comerica Bank (on behalf of the Sr. Secured lenders, Mitsui & Co., Ltd, "Her Majesty the Queen," and BDC Capital be paid in full in cash. The proceeds of the liquidation were grossly inadequate for that, so no payments were made for the KERP, ever.
The motion that set up the KERP is here:
https://www.pwc.com/ca/en/car/bioamber/assets/bioamber-015_071818.pdf
The judge's order approving it is here:
https://www.pwc.com/ca/en/car/bioamber/assets/bioamber-019_071918.pdf
The judges requirement of the secured creditors being paid in full is on page 12 of the judge's order, presuming there's anyone seeking actual facts.
No, the $125k note was not included in the consolidated note, only the ones entered into in early 2018 were consolidated.
The last disclosure that gave status of the $125k note showed $50k converted into 1B shares with $75k outstanding balance (1.5B shares left).
And all long investors were wrong on the timeframe (October), wrong on the RS, wrong on how the offering would be priced (IPO???), and wrong on company valuation, and it sure doesn't look like any "institutional investors" are pouring money into this.
And yet it is claimed there’s a horse stalking around even though the monitor told the judge there’s nothing else in the hopper, and an NDA is being claimed as the reason nobody knows about it.
That’s ridiculous and false, there’s nothing else going on for this company that will give shareholders anything for their shares, just like the monitor has stated more than once.
Sure, but notice what the NDA’s are for and the documents they are disclosed in????? Are they keeping transactions a secret from the judge? Nope. Know why? Because they can’t do that.
Keeping stuff secret from bidder to bidder is one thing, keeping lucrative transactions secret from the bankruptcy judge/court would be fraud.
LOL. There is no other transaction, the monitor has said that directly, and there sure aren’t any horses trotting around. There is no such thing as an NDA that would allow the monitor to keep an $80+M transaction secret from the bankruptcy court and judge, that is ridiculous and false.
No, he has/had 4 days from the time of whatever the event was. Can’t hold back material event reporting at all no matter where the stock is listed.
Meant to ask you, does the $3.13 offering price reflect the underwriter’s discount, or is there a price lower than that for them?
$2.60 ask is $0.173 pre-split.
Yikes, didn’t know it was that high.
Oh, well, at least he can pay off those horrible notes he signed up for and complete the SC transaction so he’ll at least have books that look like a business is ongoing.
Yep, you don’t see many scams run on NASDAQ, investors actually check the books. That’s why they come here, the OTC runs on hype, fluff, pure hoax, and possible projected potential.
What will the O/S be once this is done? Wanna calculate a market cap. $25M value of SC + a small premium might just be a buy point.
“For the love of God,” go read the summary of remaining debt in the 10th monitor’s report, it’s actually higher than $80M.
And I would suggest you consider the APA wasn’t a secret, neither was the SISP, and while the bidders had to sign NDA’s to review company documents and participate, the whole process was out in the open. The suggestion is there’s some transaction worth over $80M out there hidden from view because of an NDA when the monitor has stated directly there are none in the hopper, save maybe pawning off those worthless contacts.
Yeah, just like the guy who said there was. Thing is, I am correct. There is no such thing as a NDA that would allow the monitor to keep a transaction like that a secret. That’s hogwash.
I’ve read the motion that set up the KERP. I’ve looked through every cash flow statement since the program was approved. Do that same research and you’ll find exactly as I stated, no payment for KERP has been made because the program requirements were not met, namely they got no bids during the SISP at all, much less one that would pay the secured creditors in full.
Eloquent, but patently false. There’s no such thing as a non-disclosure agreement that would allow the monitor to keep a transaction so lucrative as to pay off all the debt a secret from the bankruptcy court and judge. The suggestion of such is ludicrous. The assets are gone, sold in liquidation. The debt remains, over $80M. What happens to bankrupt companies with massive debt and no operations nor income? They disappear when the judge discharges the debt and equity, every time.
No KERP payment has been made, period. The program requirements were not met.
The assets are already sold, liquidation happened. That is undeniable.
Worth what they offered them to the purchaser of the assets for, $408k, maximum.
Sound Concepts business is marketing supplies and services to small businesses.
And, once again, if you’ll look at the bid sheets that were prepared for the liquidation, you’ll see those 2 bidders were the only ones who bid on all 3 lots of assets of the company that were offered for sale. Other bidders only wanted 1 or 2 of the lots. That’s what PWC clearly meant by that phrase. 6th monitor’s report, page 37, for anyone inclined to learn the facts.
Still have shares in your account? Then the company has not sold.
Utterly ridiculous and false narrative. Still have shares in your account? If so, the company has not sold, they’d have to buy them to buy the company. That’s fact.
Plus, the liquidation of the assets is well documented and undeniable.
No, he doesn’t. And why would he even want to? Has he even said he’s going to register with the SEC? Nope, because the costs of the infrastructure to meet regulations is high, and it’s just him. So why is it even being suggested?
There will not be a “super 8k” or even a “plain 8k.” This company is not an SEC registrant, and will not file an 8k.
They don’t have those assets anymore. They were sold in liquidation.
This CCAA is miles down the road, liquidation of the assets has happened, the company is now an empty shell with massive debt and headed for the scrap heap. There’s literally nothing left to arrange or restructure.