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As much as I hate to say it the only way we can get rid of BK would be to cancel all common shares or reverse split 100:1 and re-issue several hundred million shares. BK effectively owns more than half the company...
Typically nobody allows you to trade penny stocks right out of the gate, you have to sign off on a risk acknowledgement and then they will allow you to trade penny stocks. Its just a protective measure to ensure you understand the elevated risk you are taking. call your help desk, that might be what you are experiencing.
September press release for BION right on schedule...
Crickets....
This used to be a great board, I miss the feedback even if it was speculative. On that note, any thoughts regarding the future state? I still suspect they wipe the slate clean of current common share investors if only to get BK out of the picture. Is there anyone out there that has insight as it relates to timeline?
Anyone hearing anything at all?
I said early on and still believe they will cancel the common shares, that is the only way they can get rid of BK. We have to remember that BK owns a massive amount of shares, something on the order of maybe half the company.... It is a real shame we will all have to be penalized in the process and I am hopeful that somehow my millions (literally) of shares aren't $3k write off for the next 100 years of tax returns, but I am a realist. Think about it BION is a $5M - $6M investment away from building ten plants with disruptive technology funded by $2B in state backed bonds and the product is contractually sold out for twenty five years, so if you are the potential investor do you buy the company with nearly a half billion outstanding common shares to include BK as the largest share owner or do you wait for current management to zero out the common shares and you then invest in something you own 100%.
It kills me to say this, especially when there is a glimmer of hope but the cold hard truth is we most likely will lose everything. Having said that I have considered this a complete loss already so I will remain long on the slim chance I am wrong and the company does what is morally right not what is financially efficient. I would appreciate any thoughts from folks who have experience or commercially sound opinions that support or reject my thoughts (other than garbage about pollution and government graft).
Crickets
Someone document the time
I was really excited when I first saw the posting along with Codaras's comment, but then I read the article. $44k is chump change, probably just enough to file the paperwork and facilitate the bankruptcy. BK is still by far the largest share holder of the company, I think he owns more than the entire board combined. The only way the company is going to be able to dump his ass is to wipe out all shareholders and start over. I do think the company will recover, its just going to be with new stock and shareholders. I do not believe they are investing any effort to recover the company with BK controlling perhaps 20% of the total outstanding shares, making him ridiculously rich and the power to significantly influence (hamper, harass)the board post recovery. Think about what a successful recovery would then mean to Carlos, you think he wants to deal rich and hugely influential BK??? No way
Found old reference in my files from January 3, 2013, it reported back then:
Number of shares beneficially owned: 56,651,785
Number of warrants for common stock: 17,375,000
Number of preferred stock convertible to common stock: 8,500,000
Number of convertible debentures convertible to common stock: 11,776,785
Again my opinion is this is all about wiping BK out, unfortunately us common folk are going to get caught in the cross fire.
Tens of millions of shares, he is by far the largest shareholder. I love TF's optimism, the fatal flaw is that anything that benefits us benefits BK to a much larger degree. If my suspicion is correct the company strategy is to wipe out the current shareholders, then start over. BK loses everything and so do we, the only other major holders are related to the company and will be granted new shares.
I suspect the play here is to completely cut loose BK, he is by far the largest shareholder....
BION has to provide the technology as collateral for the loan, the court didn't order the technology ownership to change from BION to Anon.
I'm not happy about the ruling but lets look at the facts:
**Anon sued claiming we owed them per the contractual terms totaling $1,188,112 plus interest from April 15, 2015 to today which is about an additional $150,000. Total in play is almost $1.4M
**We sued claiming 40% interest rate was not fair even though we signed the contract
**Best case if we won - BION is required to pay back $845,000 principle plus a more reasonable interest rate, lets say a rate even as high 20%. That totals best case if had won a balance of about $1.1M
Folks we were hoping with a win in court to pay Anon something on the order of $1.1M, we lost and now the court says we owe perhaps $1.4M. Does that mean we fold the tent and give up the IP because of a $300,000 delta? In my opinion I don't think so, we fought the good fight attempting to lower the interest rate and therefore the companies total liability for the loan. We lost and have to provide Anan the IP as collateral until we pay. Anon doesn't get to unilaterally take the IP, they could over time if we default long enough but they cant do that today the day after a court ruling. I suspect we did our best to reduce the cost with guarded optimism but the company has always had a more realistic expectation of paying the extra $300k.
In summary I still just don't get why this miscellaneous small crap is keeping BION from moving forward, I mean seriously we have nearly $2B of state back bonds allocated and we are Fing around quibbling over plus or minus $300k interest on a loan. Really? My hope is that there is a backer and this is just another box being checked along with the audit and uplisting, once all boxes are checked and there is absolute commercial clarity the backer will move forward with capital infusion... One can only pray at this point.
I am sorry GL but what are you talking about, the company was very clear why Hendry went to the front of the line (they ponied up $5M before anyone else did). What other plants are you talking about, Texas (feedstock study proved less than adequate)? LA (company clearly communicated prototype plant needs to be designed/built/refined prior to mass production)? Not sure if you have an agenda and are deliberately misleading or simply not performing sufficient due diligence.
Also wanted to say thank you to all who have written me private messages. I do receive them and very much appreciate your thoughts, however, I do not have the premium subscription so cannot respond in kind.
Peafunke you and I are spiritually aligned, its really a function of semantics. While you see the idea as possessing value I am simply saying its is the application of the idea translating into cash flow that creates quantifiable value and therefore garners investment, EBITDA is a generally recognized vehicle in which one can quantify value. In your example folks bought ideas during the dot com bubble, I would suggest it was an EBITDA multiple they calculated from a business plan and invested in. Granted the business plans were flawed in the 90's and that very well (hopefully not) could be the case with BION.
For what it is worth from a stranger on a blog I can tell you from deep experience participating in acquisitions as well as divestures that companies aren't bought or sold on anything but math, sure there are attributes such as IP, market share, locality, etc. but all of that translates to ROI and the degree of risk the investor is willing to take.
IP on its own is worth nothing, what the IP can generate in free cash flow is where value is derived. The value of a company is traditionally a function of its EBITDA multiple, a high IP dependent, capital intensive company (like BION) is typically valued on a horizon value predicated on free cash flow or EBITDA in the 7X - 9X range. IF BION business model can be trusted and each plant produces $50M EBITDA annually, then that means the companies fair market value is in $400M range or for ease of this post lets just call it $1/share for each producing plant. Again IF the business plan can be trusted with a five year plan of (5) plants and ten year plan of (10) plants then you take into account buyer sentiment where the market views the company value greater than current fair market value in anticipation of future value e.g. with (3) producing plants of $50M EBITDA the company is worth $3PPS, but if (2) more plants are being produced and they break ground for another (2) then buyer sentiment may be willing to take that into account and pay more for the shares today predicated on greater future anticipated cash flow.
Before you get excited remember until they are actually generating cash flow OR buyer sentiment is strong enough to anticipate future value then we got what we got which is a great idea that happens to be patented, in our case that translates to a little over $.01PPS... So to answer your questions directly what is the value of the patents, today its about $400k.
You sir are spot on, I was responding to GL post #13650 (designated on each post in the top left corner) blathering on and on about a non-relevant process. Thanks for the follow up and additional detail for the team to reference, good stuff there.
Ah, syngas created from biomass is called gasification, nothing is burned....
GL would you recommend heavy duty or will regular tin foil suffice, are the voices simply masked or do they cease?
I will make you a deal Roni, if BION isn't bankrupt by EOY you stop posting here. I will reciprocate and not post again if they do. Deal or no Deal?
Folks let me put some of Roni’s comments in perspective, like any good lie or misinformation campaign there is a kernel of truth as a foundation and the key is separating the two.
1. Issued patents for their proprietary processes
They are losing their patents to Annon who has them as collateral to their unpaid loan.
• Roni that is categorically untrue, for everyone’s clarity please note:
o Patents were used as collateral – True
o BION owes Annon the entire principle value borrowed – True
o BION owes a certain degree of interest, currently the companies disagree what that value is and a court will determine interest owed - True
o I will grant you if BION closes shop and does not pay then patents could change ownership, however, there is currently ZERO risk of Annon taking patents. Until the court rules nothing is at risk – True
2. FL and LA have provided tax free bond financing for at least 5 plants.
No patents - no bonds
• Factually correct, this needs to be resolved before Stifel Nicolaus will underwrite. Additionally there is close to $2 Billion in bonds with potential to be increased now that plant cost has increased due to improved technology modifications, this will translate to (10) plants between the two states.
3. Everything they can produce for 20 plus years is Sold
Urea fertilizer is a commodity with a price (like coffee, etc). Once produced can be sold to anyone for 50 years at the commodity price at that time.
• Commodities are priced at fair market value is true, commodities are by definition high volume with low profit margin. Where BION will differentiate itself is:
o Relative to North America competitors – 40% of total U.S. supply
? -Distinctly lower capital cost being applied to the product, $250M plant verses $1.5B. That means traditional plant overhead burden will be 6X higher than BION (estimate 20% of cost to produce)
? -With natural gas in the US in the $3 range there will be no competitive advantage as it relates to raw material cost (estimate 60% of cost)
? -In all BION should have a small competitive advantage over domestic supply
o Relative to overseas competitors – 60% of total U.S. supply
? -Distinctly lower capital cost being applied to the product, $250M plant verses $1B (plants are cheaper in China, Russia, India for example). That means traditional plant overhead burden will be 4X higher than BION (estimate 20% of cost to produce)
? -With natural gas in the $5 range in the Eastern hemisphere there will be a small competitive advantage as it relates to raw material cost (estimate 60% of cost)
? -Transportation should be something on the order of 10% additional cost from the Eastern hemisphere providing additional competitive advantage
? -In all BION should have a stronger competitive advantage over imported supply
4. Experienced competent CEO and board
Important board that are subject to your experienced alleged criminal who is doing nothing for the shareholders but diluting them illegally and blaming everyone else but himself to what's been happening to the company while he was its CEO. All Those years!
• Clearly you have an issue with Carlos, to be frank your constant whining about him has gotten old. What an impartial individual would recognize is the board is distinctly stronger with industry experts as it relates to security and corporate startup funding, as well as a real investor relations firm (not some guy working by himself pimping the company).
Roni as I have said in previous posts I have no doubt you believe you are owed money, however, the past two quarterly statements clearly define the relationship with you (Hidenet) is over and all outstanding issues from BION’s perspective are closed. Carlos will not take your call and unfortunately for us your only remaining outlet is to post your subjective opinions on an internet chat board, which in itself demonstrates your cause is doomed. Think about it, what professional with any degree of commercial relevance posts on internet chat room complaining about a company? That would be none.
For everyone else I have been contributing to this board for nearly three years and own nearly 3M shares, I am still long however am no longer procuring additional shares. I have dropped my confidence interval from 80% to maybe 60% and in fact have been selling some of my higher priced shares to offsets gains on other investments for the last two years. What keeps me long and not wholesale exit is:
• Termination of BK
• Security/Compliance expert joining the board
• Startup funding expert joining the board
• A real IR firm
• Robust legal challenge regarding Annon
With the degree of problems BION has experienced in the last 6-7 months I wouldn’t have been surprised if they closed shop, the degree of tenacity in their attempt to recover is the only thing that keeps me long. Bottom line BION needs to resolve Annon case, and let’s be clear win or lose is nothing more than a lower or higher cost to repay with the variance measured in hundreds of thousands of dollars (not a deal breaker, done FY15 perhaps?). Audited financials and up listing (in process, done in FY15 almost certainly). The HUGE challenge is the need for something on the order of $3M-$5M funding to complete the EPC report. Once the EPC report is completed then SN will issue the bonds and there is a single buyer interested in procuring this opportunity, this means leadtime when accounting for all the administrative activities we are talking about something on the order of a couple of months tops.
In summary my best guess is BION expects to button up Annon and up list with the expectation of A) Buyer sentiment improves and SP increases enough to generate the funds needed, or B) BION has an investor lined up who will provide funding once these activities are behind us. If I am wrong then we continue to flounder looking for funding until we either get it or we bankrupt. Hope this helps folks, take it for what it’s worth from a random guy posting on an internet chat room...
The state has allocated the grant, their part is over. Stifel Nicolaus will be the underwriter of the bonds, as I understand the process they scope the requirements to ensure the state and the buyer of the bonds are sufficiently protected. So that translates to requirements such as fixed or firm pricing contracts, obviously that would include property. How they lock it up and where they lock it up is irrelevant to the process, it just needs to be fixed/firm in order for SN to issue the bonds. This process will be replicated for each location, however, it should be noted once the first plants bonds are sold the variances will be nominal relative to the initial plant so it should flow much more smoothly for plant 2 and so on. Hope this helps you GL, I don’t expect you to be a believer but it would make this board much more pleasant if each of your posts weren’t falling skies…
Let's also keep in mind folks that Roni believes he is owed $300k and according to the last two financial statements BION does not (reference Note 11). Therefore the company continues to move forward, albeit slowly, and Roni is left posting on an internet chat room. I don't doubt Roni believes he is owed more money, reading the tea leaves I just do not believe A) BION agrees or B) this is a trivial (for the company not Roni) issue that can be dealt with when/if the company gains momentum and this is small issue to be closed. $300k is a very big deal for the company today but not so big once EPC and funding is complete, a good businessman would get that and adjust his/her strategy accordingly because nobody with any common sense would pay now. That's not nefarious that is smart business.
In regards to 55% of the company as was published in an earlier post they can't take away our shares, however, they could theoretically issue enough shares to dilute current holdings to a value that represents 55%. Common sense should prevail here, while $300k is a big deal to an individual it is a nominal value as it relates to the corporation and no court is going to make that kind of call. In closing there is a lot of background with the Hidenet parties, lots of hmmm shady activity, that is probably why Carlos wont take Roni's call (as Roni himself claims). Hang in there folks, there are bigger challenges in front of us than this despite the degree of noise on this board.
Ron to ensure we are all on the same page, you settled with BION for $300k total and claim to not have received any or all of the settlement value. Now you believe a judge will grant you 55% of a potential multi billion dollar company as fair compensation? I have no doubt you are frustrated and passionate about this, however, $300k and 55% of the company are not even close to the same unit of measurement. I sincerely hope BION settles their debts honorably, but I doubt you have a reasonable chance of getting 55% of the company. Best wishes.
Ron for clarity are you saying that 1 share holder executed their signature in support of the activity but the email containing the signature was sent to the wrong email address? Is your whole argument predicated on the board lacking receipt of the email, if so that is immaterial and the activity legally binding if the signature was in fact executed regardless of whether or not they had it in hand.
It appears 15.6M shares issued in 2Q15?
Dec. 31 2014 Common Shares Outstanding 417,633,517
2015 Common Shares - 1,250,000
2015 Warrants Converted into Common Shares - 666,667
March 31, 2015 Common Shares Outstanding 419,550,179
2015 Common Shares - 15,640,428
2015 Warrants Converted into Common Shares - 250,000
2015 Common Shares Exchanged for Employee Expenses - 1,250,000
June 30, 2015 Common Shares Outstanding 436,690,612
Plants were always designed to go both ways, thus providing the company with the most profitable solution depending on feedstock commodity pricing as well as the greatest supply continuity probability.
BION received an $845,000 disbursement from Annon, they may or may not have to pay the crazy interest rate BK agreed to, however, they at a minimum have to pay back the principle. That sucks up 2/3 (minimum) of what is on their financials, in all likelihood the AP ledger exceeds the balance. BION is in fact broke. I'm still long and not selling out, just clarifying the difference between a value reported on a financial statement and real cash money on hand that is available for use.
If my understanding of EPC reports is correct a firm fixed price is site specific, however, the bulk of the expense and design is embedded in the application of the technology and plant design. I would suggest greater than 90% of the EPC and therefore the cost is related to the plant design, leaving a nominal expense delta to replicate on another site. So once they complete the first location they simply take the plant design and plot it on the new locations and solicit firm bids for utilities, drainage, roads, etc. and they can then very quickly and cheaply complete a new firm fixed price EPC for a new location.
BION was very clear why Taylor became the first site, they were the first to give them funding. In a cash constrained company trying to get off the ground sometimes decisions that aren't the perfect plan need to be accepted in order to continue moving forward. Every day we aren't moving forward increases the probability of failure, I do believe there is still a good chance for success but as I posted earlier if Annon isn't settled and $3M - $5M funding secured by EOY then I would have to consider this investment has a very little chance of success.
King Rook think globally, U.S. natural gas price is only relevant to product made here in U.S. To accurately assess the advantage of low consumable cost (Biomass vs natural gas) you need to look at the importing countries (India, China, Turkey, etc.) natural gas price then add transportation costs as well. To your point the competitive gap in the U.S. natural gas plant verses biomass is currently negligible but relative to the imports a distinctive cost advantage is available.
But that is not the whole picture, you also need to add the capital cost of >$1B for a U.S. traditional natural gas plant and BIONs ~$300M. That most certainly provides a competitive here locally.
Hope that helps.
To frank Gatorlady your last post provided the first evidence of you not actually being that which you suggest we assumed you were at the end of this post. I hope you stay on this new trajectory in your future posts, that was some good research and valuable input to the team here trying to infer how this company is progressing.
BION has no money and as a result the EPC is on hold, no EPC means no bond sale. No bond sale means no capital funding, if they fail to receive a cash infusion in the next month or two I suspect something dramatic happens i.e. something on the scale of bankruptcy or sale of technology. As for October, nothing is happening in October or even 2015 at this point. Can Carlos deliver, perhaps, but it is more unlikely every day that passes. If Carlos doesn't land some VC by the end of Q3 I got even money says BK comes in with funding and runs Carlos off, the board would have no choice as they face bankruptcy before EOY.
Bottom line is the current state is not sustainable for much longer, there aren’t “Longs & Shorts” anymore with this stock.
They have gone through a number of accounts as well as lawyers, from what I have been able to deduce the common dominator is that they (accounts and lawyers) want to get paid and BION can't/won't pay. Same reason EPC is on hold now... That isn't a knock on BION and as TF often references this is how startups start up, they scratch out a living until they get cash flow. My greatest concern is that for better or worse BK was good at pimping BION, Carlos most certainly has strengths but not sure if he is the guy who can land the ~$5M in funding the company needs to complete the EPC report.
I don't think there is much to do as it relates to parallel processing as you suggest other than nominal administrative activities, especially considering there is a single buyer for the bonds. EPC is the gate, complete that and bonds are sold and company is funded in a very short period of time. It is still my impression that the EPC is not being worked on until it can be paid for, which has been the case for the last couple of years (actually since KBR). Yes some activity has taken place as it relates to the EPC report being completed which is directly correlated to the funding they have received, however, they need more money to complete it. You can save this message and show it to me at the ground breaking ceremony, I will buy you a steak dinner if bonds are sold before Christmas. Sorry, not trying to be a downer just realistic considering the facts.
I am familiar with stock options, if you don't meet the strike price by the expirations date they expire and they are worth nothing and go away. Is it the same with warrants? Also are options and warrants counted as outstanding shares?
You bring up a great point that has had me puzzled for the last 12-18 months, literally this entire operation has been delayed from a lack of cash to pay for the completion of the EPC report. BION has billions (yes with a B and plural) of state backed bond support and cannot complete a fixed cost EPC report because it needs a few million to pay for it, really? Yes EPC reports are technical and complicated, however, for the companies that reside in that market niche its simply another job. My guess is that BION has worn out all the easy and moderate cash funding options and are trolling, the question is will they score sooner or later. If the later, then the options become more and more less favorable for the company. Personally I don't get why the engineering company doesn't simply charge a premium for delay of payment and bake it into the cost of the EPC report, once that is done we are looking at perhaps 8 weeks to complete the bond sale and they get paid. Puzzling indeed...
I hear you and will believe that when Q2 financials are reported and signed by counsel. However as I have posted previously and which has been confirmed by Adam BION has no revenue stream therefore no cash flow so every bill they get is either a) Not paid, or B) Paid with stock, or C) New shares are issued and sold for cash, as evidenced in the 14Q4 and 15Q1 financials.
OK got, it. Just a poorly written statement, a more accurate description would be "On-going Activities" or "Objectives include". They lack funding to complete the EPC report, that's why we have been dead in the water for most of this year. Until Carlos scores ~$5M in capital no EPC, no EPC the company continues to issues shares to keep the lights on, more shares being issued dilutes the demand profile and we stay in the .02 - .03 range...
Codaras I skimmed though the Q1 report but cannot find the statement you posted regarding EPC being completed (page 7 is related to concerns and liquidity)? Below was the most current update I could find, what am I missing? I would be stunned if EPC was actually complete and nothing was published, there is no bigger news other than the production of the first ton...
In late October 2014, Haldor Topsoe informed the Company, Saipem, Andritz Carbona and Amec that Haldor Topsoe would not be able to provide a process guarantee for a critically important piece of equipment that was suggested, designed and built by Haldor Topsoe. As this new revelation was considered an unacceptable situation, BioNitrogen was forced to evaluate alternative suppliers and has been working closely with other technology providers and believes that a resolution has been reached after several months of careful engineering investigation and analysis. As a result, the Company is currently negotiating a new agreement for completion of the FEL3 engineering work associated with the SynGas Cleanup and Conditioning Plant, a 300 STPD Ammonia Plant and a 520 STPD Urea plant. Once the FEL3 engineering work is completed, the Company will have a Firm Fixed Price estimate required for an EPC contract and required for financing. In April 2015, Haldor Topsoe presented the Company with an alternative technology that they would be able to guarantee and is currently being considered as an option.