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Ouch! NYSE does not approve the listing of the additional 43 million shares. You guys might not realize when you're being scammed, but fortunately the SEC and the NYSE do.
http://ir.stockpr.com/mgtci/company-news/detail/887/mgt-provides-update-on-status-of-d-vasive-acquisition
you're right.
wow. amazing they don't warn investors in advance about that record date, absolutely uncalled for imo.
trade, no idea. it seems increasingly unlikely, but who knows. i'm pointing out long term this stock is worth maybe 15 cents, i'm not really that much of a short term kind of person.
Streak, sure they might not sell. but really, is that likely?
STEM now has (a minimum of) 12M shares outstanding, plus warrants that's a minimum of 17M.
That gives them a market cap of 28M.
The reverse merger details give STEM shareholders 5% in the new company, Microbot Medical 95%. So 28M = 5%, that means the current share price values Microbot Medical at 560M.
Microbot appears to have no revenue and has two products in development that are being tested on animals, they are years away from commercialization. They recently completed a 5M financing round. How much do you think Microbot is really worth? Let me be extremely generous and say 50M (it could be much much less). That would mean the STEM share price could drop to about 15 cents.
You're right, those warrant holders are no dummies. They received a gift (that should be investigated by the SEC imo, why did STEM agree to this?) when the exercise price of their warrants was reduced by 90%. Suddenly their completely worthless warrants with exercise prices in the 10's are deep in-the-money and worth a fortune. They won't just walk away, they'll run as fast as they can.
yeah, it's sort of the same.
a warrant (like an option and the employee plan you're describing) is a right to buy shares at a pre-agreed price. a warrant has an exercise price, that's the price someone has to pay to get those shares, regardless of the market price.
so if the exercise price of the warrant is below the market price, it's attractive to exercise (as you make a profit by selling). if the exercise price is above the market price, you generally don't exercise as you would end up overpaying.
in companies like STEM warrants are used as a bonus, to attract financiers.
as long as the shares have been registered, there's no hold period after exercising the warrants. you had to hold for 3 years, a warrant holder can cash right away after exercising.
i hope this helps.
the company you owned: you were the sole (and 100%) shareholder. you still have shares, you just owned all of them.
any news can only be bad news at this point.
shares from warrants have not even been created yet. they will hit the market tomorrow or, more likely, monday. the flood hasn't even started yet.
because you think that Israeli company STEM is reverse merging with, that has no FDA-approved product yet, and no revenues is worth more than 700 million dollar (as the current shareprice implies)? Do tell, how did you reach that conclusion?
per the latest 10-Q 6.898.841 warrants, different types.
also note, the $ 1.10 exercise price only applies to 2015 Warrants. The deal is even sweeter for 2016 warrants. an exercise price of $ 0.30 when the stock price is $ 1.80, life is good if you're a STEM warrant holder
"Company Warrant Exchange
As part of the Company’s obligations under the Merger Agreement, the Company has negotiated with certain institutional holders of the Company’s 2016 Series A and Series B warrants to have such holders surrender their 2016 Series B warrants in exchange for a reduced exercise price of $0.30 per share on their existing 2016 Series A warrants and the elimination of the anti-dilution price protection in the 2016 Series A warrants. As a result of the exchange, the exercise price for all outstanding 2011 Series A warrants and 2016 Series A and Series B warrants has been reset to equal $0.30 per share. The 2016 Series B warrants remain unexercisable pursuant to their terms."
read it?
i just send you an official statement from the STEM warrants document; the official terms & conditions coming from the company itself.
and you type something in capslock, and somehow that takes precedent over what the company says itself? back up what you wrote with an actual URL, and I'll believe you. if you are just gonna shout something random, obviously i'd rather listen to the company if you don't mind.
yeah, i guess you missed this, see below. There's three business days between exercising the warrants and actually getting the shares. So no, these shares are very much still waiting to be sold.
"
"Exercise Shares purchased hereunder shall be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposits and Withdrawal at Custodian (DWAC) system if the Company is a participant in such system, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the delivery to the Company of the Notice of Exercise (such date, the “ Exercise Share Delivery Date ”), provided that the Company shall not be obligated to deliver Exercise Shares hereunder unless the Company has received the aggregate Exercise Price on or before the Exercise Share Delivery Date. This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company. The Exercise Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date this Warrant has been exercised by payment to the Company of the Exercise Price."
"
only 1-2 days now and those shares from warrant exercises will flood the market. good luck with that as a long.
of course that's not true.
every company has shareholders, publicly traded or not.
you do realize the pre-market volume is 7660 shares, which amounts to 13.405 dollar in nominal value, right
that sure sounds like an epic battle between longs and shorts :)
the pps was over $4 in May because STEM was developing a potential cure. That cure is now gone; their Phase 2 Trial failed and STEM stopped developing. Without the merger STEM is worth 0, with the merger it's worth maybe 10-20 cents.
true, but not every idiot is a genius though.. in fact, most are not.
really? funds have been buying? are you sure about that?
the only institutional holding of any small significance per the 30th of June is an algo-based hedge fund; nothing fundamental there.
a few of the others holding even smaller (much smaller) holdings are market-makers.
all of those parties are in this because you, the retail investor, is in this, and as a result there's volume. renaissance technologlies lives of volumes, not of fundamentals. kgc same story. give me the name of any one serious institutional fund that is actually holding a stake worth mentioning based on fundamentals, and i'm very impressed.
i don't understand how you guys don't see how ridiculously amateurish all of this is.
it doesn't matter whether Kimdotcom or MCAfee or someone who calls himself Eijah is right, these app conversations being leaked all over the internet is so ridiculously childish.
guys, this is a 250M+ company, not kindergarten. do you see similar situations with any other public company? these guys are supposed to build an internet security powerhouse with tens of millions of revenue, yet seems to spend their days throwing mud to each other on twitter. i mean, it's so ridiculously childish. do you really think serious investors, serious financiers, serious clients will take these clowns seriously? i'm lost for words, really.
not sure why i bothered, but here you go: from the 2015 STEM warrant document. the exact procedure that needs to be followed. also note THREE (trading) DAYS is the magic number here, then those shares become available, not today.
"Exercise Shares purchased hereunder shall be transmitted by the transfer agent of the Company to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company through its Deposits and Withdrawal at Custodian (DWAC) system if the Company is a participant in such system, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three (3) Trading Days after the delivery to the Company of the Notice of Exercise (such date, the “ Exercise Share Delivery Date ”), provided that the Company shall not be obligated to deliver Exercise Shares hereunder unless the Company has received the aggregate Exercise Price on or before the Exercise Share Delivery Date. This Warrant shall be deemed to have been exercised on the date the Exercise Price is received by the Company. The Exercise Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date this Warrant has been exercised by payment to the Company of the Exercise Price."
look, there are strict rules in security law. you can't just create shares like that and send them to someone's brokerage account in minutes, it's a procedure you need to follow with the depository and the exchange where your company is listed. you can't just say: look, here's 1 million shares, you need to follow the actual rules.
the only way to sell before you get the shares is sell short, then wait until the new shares hit your account to clear out your position. In STEM that's not going to happen; the shares are almost impossible to find short.
a signature loan is, as you say, a loan. it has absolutely nothing to do with the securities law / the process of new shares being created.
again: warrants don't convert into new shares overnight. after an exercise notice, funds need to clear, new shares need to be issued and approved for trading. that takes a few (business) days. the selling wave won't be here for another few days.
down.
the people getting those shares at a hefty discount will sell. at the same time, it's in their interest to try to keep the shareprice up until they can.
as i said before, the warrants haven't even been exchanged into shares yet. that will take 3-5 days. what you have now is the exact same float as yesterday.
you're right.
it's the same as how all the bulls thought Kim was awesome and a pioneer and how the stock price would rocket once he would be signed on.
funny how things sometimes make a 180 degree turn if it suits someone.
they get converted into shares at a certain price. so people exercise their warrants and pay STEM a certain amount of money to get new shares for, what was it, 1.10, and then sell them in the market for say 1.60 and make a nice 50 cent profit, while you pay full price.
the warrants are not immediately available for sale. when you exercise them, it takes a few days before you actually get them in your account. so the shares from those warrants won't hit the market for another few days.
Ascendiant did a market offering for MGT in 2014. And now they rate MGT a Buy. Coincedence? Uhm, no. It's so extremely obvious..
ofcourse it hasn't.
these shares haven't even hit the market yet, they don't get exercised within seconds.
but regardless, trade the hype, but after the hype make sure you leave.
not trying to scare you or anything, but you should also read the POS AM.
well there goes the reverse merger theory.
BIND withdraws appeal to Nasdaq suspension of listing and will liquidate in October.
i'm amazed BIND hasn't released an 8-K afterhours, so my guess (but my guess is as good as yours) would be tomorrow.
the 22.5M was a comment from BIND's lawyer. i'm (again) amazed he made such a shareprice-sensitive remark to a journalist just like that, but i'm no expert on that. i'm sure the 8-K will tell us more though.
the total nr of shares could go up due to options and warrants exercise being moved forward, not sure by how much or at what terms as long as we don't get an 8-K. plus the 22,5M seems to have been a loose comment and it isn't entirely clear to me what that figure includes (it seems unlikely BIND has the severance packages of personel to be laid off taken care off already for example).
at the current share price there's some upside in a 100% perfect scenario, but it's way too uncertain and not enough gain for me to bet on it.
found it. thanks!
where did you guys find the 22M? i'm away from pc so can't search the document. thanks!
why would "they" understand the bid, if most of us don't.
i think we may be talking on two different levels here:
the 8-K states: Excluded Liabilities: "any and all liabilities for any indebtedness or obligation to borrowed money of seller".
the 8-K also states: Excluded assets: "All cash and cash equivalents".
Imo, despite what you wrote, debt and cash stay out, almost everything else is in
Hercules don't mind the BK, as they get paid first above everyone else. Like you said, their debt will be satisfied but that "satisfaction" will have to come out of the 40M.
about reverse merger, you might be right, i don't know, but BIND will first need to exit BK. i don't see it happening any time soon. of course a reverse merger in itself doesn't create any value (it's a neutral-value transaction, if the merging entity is valued correctly; obv the market can decide otherwise), only the worth of the shell does and that won't tip the balance either way.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11477685
this is the initial Pfizer bid, it doesn't assume liabilities and it doesn't assume net cash. it does assume almost everything else.
the wording in the PR regarding this bid is exactly the same, it makes absolutely zero sense for Pfizer to assume debt.
so the math you need to do is current cash plus pfizer bid minus current liabilities minus future BK costs (lawyers etc) minus severance packages for non-key personnel (key personnel will be assumed by Pfizer), and divide that by the current nr of shares, possibly plus new shares from stock options that will be automatically exercised.
i'm happy to be corrected here, but if you assume virtually no burn those last few months, no BK cost, no severance packages, I get 1.20. that's obviously unlikely, so it will be lower. how much? who knows, but obviously I won't be buying at these prices.