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Management probably selling ATM. They need cash to maintain operations 24/7, as they have mentioned they are doing. Hopefully they are making money on these shipments. Either way, great publicity and awareness. Long
Appears as if institutional and insider ownership is almost 37.5%. I would say that's a great sign. Drop is probably due to short attack.
I would say so. No news really. Perhaps $14.95 was overvalued. But $11.43 seems undervalued. Hopefully it will reverse.
Are we no longer trading in 5 cent increments as of today? Does anyone remember if that SEC experiment has ended? thank you
I sold my warrants. They were basically free money. Still in it -- waiting for someone to buy these guys out. Their business is strong, once they get rid of their reverse mortgage unit.
Basically means that when hospitals are looking for insurance to pay for a procedure, Cytosorb will now be on the list of items that hospitals can check off when asking for insurance reimbursement. Makes it much easier for hospitals to get reimbursed, and not have them think twice whether using Cytosorb will or will not result in reimbursement.
US Product Revenues - Pet related sales? Does anyone know? These are becoming more substantial ($88k in 6 months of 2018).
Still in it!
Nothing much has changed since my last post about # of shares.
New info:
- Warrant A is exerciseable $20.63 (all this means is that if the stock is trading above $20.63 between now and Feb 9, 2028, you can get that stock for free from the company, and then sell it or hold it. It's like a call option. Of course you'll have to pay taxes, unless you elect cashless exercise).
- Warrant B is at $28.25
Amended Credit Facility with Credit Suisse - I don't like these terms, which call for 50% of company's excess cash to pay down the loan (see paragraph below the chart in item 1.01 of yesterday's 8-k). I also don't know if the loan balance has increased.
I think these guys are hinting at the fact that there will be an MSR sale, because of this (otherwise, why mention the date of 2/15/18?): "The Credit Agreement also requires that upon receipt by the Company or certain of its subsidiaries of the gross proceeds of any disposition of certain bulk MSR and related servicing advances by the Company or such subsidiaries prior to February 15, 2018, the Company shall make a prepayment of the Term Loans in an amount equal to 80% of such gross proceeds."
New Repo facility - also not sure whether the available repo balances are up.
New Fannie Mae Servicer advance financing facility - Looks like additional notes/bonds issued here. Doesn't look concerning to me.
New/updated Board of Directors
Pretty positive overall, in my opinion, aside from the 50% of cashflow going to pay down the Credit Suisse debt.
Wonder how long it will take warrants to appear in our accounts. Go longs!!
It's official! On Monday, we'll open on a new ticker. 17.5:1 reverse split. Lets go!!!
Ok good - so tomorrow things are closing. Hopefully in a week, we'll be back up and running. Good luck all.
Agreed. These things take 3 days max. It is what it is....just odd.
3 months away? wow....
Where do you see that?
It's very possible! If you have a link or a date of 8-K in which that is stated, I'm happy to take a look.
I agree, with the exception that common share holders do not get benefit of the full New Common and A+B warrants - we get 1/2. The other 1/2 goes to convertible note holders.
I'll start with this: why the effective date hasn't been achieved is beyond me. I don't understand what "remaining conditions" are still not satisfied. Also, this line is of concern "The Company believes that the Prepackaged Plan remains feasible notwithstanding the variances described herein."
With that said, this is the new structure:
New Common Stock: 4,252,500 (50% to existing common stock holders and 50% to convertible note holders)
Senior note holders stock: 11,497,500
Incentive plan for mgmt: 3,193,750
New Common stock warrants A: 7,245,000
New Common stock warrants B: 5,748,750
If you currently own 50,000 shares, after the effective date, you will own 2,844 shares, 4,846 A warrants and 3,845 B warrants. (50,000 shares represents .06689% ownership of the New Common stock ((50,000 / 37,373,551 * 4,252,500 / 2) / 4,252,500). If you apply that ownership to to A and B warrants, you'll get to the numbers I'm getting to). Both A and B warrants should be traded on the stock exchange and can be bought/sold separately from common stock. I hope I'm not wrong in my calculations, but please do let me know if I am.
IF at some point, the company does well and both A and B warrants will be exercised, current common stock holders will own 27% of the company.
What do you mean? why does it matter how many shares? this deal is sealed - common owners get 13.5% of new shares (more like 12%, after dilution for employees).
So if we're getting 12% of total equity, then does it matter if there will be 12 shares issued or 100,000,000,000 shares? makes absolutely NO difference.
Good luck! I hope you find more good investments. :)
I'm still in. Nothing has changed. 8-K filings are required by SEC. Book value looks to be $1.30-1.50. We're trading at 50% of that.
RockHard - while I agree shares are undervalued, in my opinion, you're over estimating the value of this company. Even after restructuring and elimination of $800m of debt, which results in reduction of interest expense by approximately $60 million, the company is still NOT profitable. They continue to lose money. So those losses will continue to reduce book value of the company.
The key here, is to project when, or if, the company will start losing money and when they will turn around and make money. Otherwise, to value a company based on book value, while its book value continues to diminish due to losses isn't the best valuation approach.
I do believe the company is undervalued at these levels, but the likely 'fair value' is around $1-1.50 at most, not $1.50-2 or anything beyond. That is why I said that we won't know too much until Q2 earnings are released, at which point restructuring and abnormal professional fees will be behind us. I own a lot of shares and am optimistic, but I'm looking at this realistically.
I believe warrants give you the option to take additional shares if certain milestones are met. Those milestones are outlined in the restructuring agreement. Warrants WAC is issuing have a 10 year life, so anything could happen.
There will be two classes of warrants, as follows (I don't follow the "exercise price" provision, so if anyone could clarify, would appreciate it) (https://www.sec.gov/Archives/edgar/data/1040719/000119312517315942/d477008dex101.htm):
The Series A Warrants shall be subject to a governing warrant agreement (“Series A Warrant Agreement”), and each such warrant is exercisable for one share of New Common Stock.
The number of Series A Warrants shall be determined at the effective date of the Plan such that, in the aggregate, the holders of Convertible Notes and the Existing Shareholders (through the Series A Warrants and shares of New Common Stock issuable to them under the Plan) will receive 50% of the incremental total equity value of the Company above $325 million (the “Series A Threshold”) (after giving effect to the conversion of the Preferred Stock).
Exercise Price
The exercise price per Series A Warrant shall be set at a price per share of New Common Stock such that the Series A Warrants are “in the money” at and above the Series A Threshold (expressed on a per share basis).
The Series B Warrants shall be subject to a governing warrant agreement (“Series B Warrant Agreement”), and each such warrant is exercisable for one share of New Common Stock.
The number of Series B Warrants shall be determined at the effective date of the Plan such that, in the aggregate, the holders of Convertible Notes and the Existing Shareholders (through the Series B Warrants, the Series A Warrants and shares of New Common Stock issuable to them under the Plan) will receive 60% of the incremental total equity value of the Company above $500 million (the “Series B Threshold”) (after giving effect to the conversion of the Preferred Stock).
Exercise Price
The exercise price per Series B Warrant shall be set at a price per share of New Common Stock such that the Series B Warrants are “in the money” at and above the Series B Threshold (expressed on a per share basis).
It doesn't matter how many shares you will have. Let's put it this way.
You have 100k shares, which represents 0.3% ownership of the current common holders (100,000 / 38,000,000 shares).
38,000,000 shares will represent 13.5% ownership of the company.
YOUR ownership = 0.3% x 13.5% = .0355% ownership of the TOTAL company
So it doesn't matter if you have 10000000000000 shares that represent .0355% ownership, or if you have 1 share.
To summarize:
Senior note holders get 73%
Convertible note holders get 13.5% (plus warrants)
Current common stock holders get 13.5% (plus warrants)
Total = 100%
Senior note holders do NOT get warrants.
Yes, you are correct in that that's what the 8-K says. But current bond holders get 73% ownership. See below from 8-K.
The Company will issue to holders of Senior Notes Claims:
• $250 million aggregate principal amount of secured second lien notes subordinated in right of payment to certain Senior Obligations (as defined in the indenture for the New Second Lien Notes) having the terms described in the Prepackaged Plan; and
• $100 million aggregate initial liquidation preference of Mandatorily Convertible Preferred Stock having the terms described in the Prepackaged Plan, convertible into 73% of the total number of issued and outstanding shares of New Common Stock as of the Effective Date subject to dilution by shares of New Common Stock issued or issuable pursuant to the Management Incentive Plan and by shares of New Common Stock issued after the Effective Date, including shares of New Common Stock issuable pursuant to the New Warrants.
In other words, Senior Note holders get 73% of common stock. Existing common holders get 50% of the remaining (50% x 27% remaining = 13.5%)
Not sure I agree. Current common holders will own 13.5% of the company. Company's book value (for what it's worth), will be approximately $500-600m, which means book value allocated to common holders will be $65-80m.
So, if you currently own 370,000 shares (or 1% of total common shares), you own 1% of the company, and are thus entitled to 1% of the book value. That lands at $650-800k. However, your current 370,000 shares are only worth $315,000.
So while the structure / number of shares may change, the book value that will be allocable to existing shareholders will continue to the be same. Plus we get warrants.
So, in my opinion, nothing has changed.
I think we'll continue to hover around these levels until 1/31/18. Then when there is more clarity, we'll take a little leg up. Then after 10-K is filed, and we see Q4 performance, possibly another movement (up or down). Then Q1 report will be unclear, since it will have a ton of professional fees, etc. I don't think we'll see true operations of the company until Q2 report will be issued at some point in July / early August. Around that time, we may trend towards book value (whatever it will be at that point).
I believe he did.
Cash is UP?
9/30/17 - $15.4m
12/31/17 - $17.3m
So cash is up by $1.9m in Q4, with no new debt. This says a lot - a) they are selling shares at the market, and we're still at $7.50 and b) their operations are robust enough that the cash burn is becoming smaller and smaller.
This is a significantly positive sign.
Great news! Definitely puts CTSO on the US map now. We are officially a different company now. Still a long road ahead until trials take their course and are, hopefully, a success.
On a different note, Roche acquires Ignyta to bolster it's oncology portfolio. Looks like a $1 billion deal. With the new tax reform and a lower corporate rate, which will allow more cash to be kept in each company's coffers, I expect more M&A activity in the bio sector in the next several years. This bodes well for CTSO.
That is NOT exactly what he said. He said they will achieve OPERATING profitability. They will still be losing money b/c of trials they will have to fund.
Aside from tax selling, I do not understand why this stock is below $6. Things are going great for us. Perhaps CTSO keeps selling in the open market. I prefer this open market selling, rather than a secondary offering.
Anyone know what the hell is going on with the stock price?
Not how that works. It's misleading, b/c when I saw the COO sell, I assumed there was no material news coming up.
Sorry, but wrong. Employees are granted shares that vest on a pre-determined schedule, or they are granted options. Once the grant vests, then employee actually owns those shares or options and insider trading rules automatically apply. In other words, once those shares/options are owned, the employee can NOT sell shares or exercise options during a blackout period. Looks to me, the COO exercised his option and then sold.
I'm not suggesting there is anything wrong with exercising an option. Looks like it was necessary for expenses (college tuition for a child, or a car, or home improvements, etc). My point is that I would assume the company was in a blackout period due to such material pending news and insiders could not buy/sell shares during that period.
Only under Rule 10b5-1. CFO was not under this rule. What am I missing?
Rule 10b5-1 under the Securities Exchange Act of 1934 allows officers, directors and other insiders of public companies to purchase and sell their company's stock while they are in possession of material non-public information, provided that the transaction is made pursuant to a trading plan previously established
What's the relevancy of your question?
I would respectfully disagree. I've said this many times before - Dr. Chan is a huge asset to the company. He's a hard worker, and has brought this company pretty far from where we were 10 years ago. He continues to work hard and move the company forward. However, while I believe this company is nothing without Dr. Chan, we need to be able to separate emotions from reality. Emotionally, I'm attached to Dr. Chan. Realistically, he's done a horrible job for the shareholders. While sales have gone up exponentially, market cap of the company (and subsequently the share price) have not gone up that much. We have under-performed any and every index out there.
I have and continue to suggest that Dr. Chan moves to the COO position. In my opinion, we are at the brink of the 'next level', and we need a new CEO who can take us there. I respectfully disagree that that CEO is Dr. Chan. I also believe that Dr. Chan is underpaid for what he does. His salary should be increased. Kathleen Bloch is over paid - the $4.50 capital raise should have gotten her fired - unacceptable that CFO would allow a capital raise 20% below market to happen.
Great news this morning. I do not understand how the CFO was able to sell 4,000 in shares last week. All public companies have blackout periods when they can not buy or sell stock. Typically, that blackout period includes material pending news (such as this announcement today). I'm very puzzled.
Yes, but in the Yahoo interview, Dr. Chan stated that they'll start "in the next couple of months". I hope it will be in 2017, but I wouldn't be shocked if it was in 2018. Unless of course, one of the bonus milestones is based on submitting the REFRESH II by 12/31/17. We shall see.
Short interest as of 11/15/17 down 30k shares (marginal at best), compared to 10/31/17. Still 1,324,539 shares short. Go CTSO!
$7 on healthy volume, again! Would be interesting to see where short interest is as of 11/15/17.
I think we're on our way!!!!!!
13.6% growth. Not 10%. Simple math, pearsby.