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The most significant new information is found in BIONQ's latest motion.
http://bankruptcompanynews.com/bionitrogen-bankruptcy-news-5-4-16/
Specifically, they have motioned for an extension of time for "Teneo" to evaluate the technology and investment merits.
The Court scheduled a May, 24 2016 hearing to consider the motion.
It appears that Teneo is evaluating their opportunity to 1) bailout the existing share structure... (giving us diluted shares with SOME value)
OR 2) fully fund everything as a Merger/Acquisition... (and our shares will be cancelled.)
http://www.teneoholdings.com/
There is still hope that the decision-makers see long-term "Goodwill Value" in providing SOME value for the existing "small investors."
All we have at this point (according to the city and the company) is that the first plant will be in Perry. The local location doesn't seem to be important right now. There are many hurdles to be crossed (like 7 to 9 million in debt) before choosing a specific piece of property.
Here's a new story on BIONQ.
THINK... before you do what I'm doing.
My 2 rules for speculating on startup companies is at the end of the story.
http://seekingalpha.com/instablog/37807526-timothy-fletcher/4879074-bionitrogen-holdings-corporation-bionq-yet
Traderwebb, I don't recall "hyping" anything.
I do recall pointing out what I've done AND how risky it is to do so.
I've given no advice. I've simply shared what I'm doing.
You are correct that the penny players are hyping... both long and short.
I think all of us see that the shares are most likely to be cancelled.
The only reason to buy at this point would be to take advantage of the hype that you pointed out.
Short term trades are quite different than our long positions... which have a 90% to 95% chance of being cancelled.
Hi, The Blues :)
The odds are high that you will be proven correct.
You're not too far off on the high percentage of cases where the shares are cancelled.
And, there doesn't seem to be a white knight among us to step up; buy the debts; and do a rights-offering.
However, that could change.
All of the debts and the current Market Cap is less than $10 million.
There are two groups that I know of - with the capital to do it - who are taking a look at this situation.
The technology and opportunity remain sound.
This is a cash crisis... that's all.
If our shares are cancelled - and I agree that's most likely - I'll be investing in whatever new company comes out of this.
The technology and new management team will be successful, with or without us.
Sadly, if the shares are cancelled, ALL of us will be considered fools for ANY shares we bought.
BTW, I know two people that nailed the pull-back this morning at $0.0027 and sold later in the day for an 85% gain.
That didn't seem too foolish :)
Hi, runnerup :)
Perhaps you should apply to become a moderator.
It's open to anyone who applies.
There are no qualifications required.
It's always good to have numerous "eyes-on-the-subject-matter."
Give it some thought. You might be good for the conversation. :)
Hi again, peafunke :)
I've been absent while traveling.
Since both "fundamental" and "technical" analysis have been thrown out of the proverbial window... both videos make as much sense as anything else.
Let's hope the bankruptcy judge is a fan of Bon-Jovi and AC/DC... :)
All of us are sometimes exercising "Confirmation Bias. "
http://www.investopedia.com/terms/c/confirmation-bias.asp
If you're long on BION... ANY good news brings hope.
If you're trying to prejudice investors against BION... good news must be discredited.
Today, I doubled-down on BION. Granted, the risk of the common shares being cancelled remains a possibility. However, the cost of doubling my position (at $0.005 per share) was relatively microscopic. (So what!... if I lose a little bit more.) The latest news suggests that the NEW management team is fighting for the company. They just might win!
My decision to double-down does not qualify as an investment decision. It is most certainly a VERY speculative trade... based solely upon the POSSIBILITY that BION will emerge intact from Chapter 11.
Presently, BION is at $0.008 per share. A limit-buy order for 100,000 shares at $0.005 will mean spending only $500... WHEN it pulls back.
Keep in mind that your success depends upon the decision of a bankruptcy judge. If the shares are cancelled... you lose your $500.
If BION comes out of Chapter 11 intact, you could soon see your 100,000 shares turn into $10,000... or $100,000 as they get going again.
No advice here... I'm just sharing my choice and the risk/reward ratio.
Good luck :)
The last one of my holdings to do it was McEwen Mining (MUX)
Here's an overview from one of the law firms that handles such offerings:
http://www.jonesday.com/files/Publication/10639de1-2d1e-45ac-b59f-5a1fde0f0246/Presentation/PublicationAttachment/bfc4fae8-e29d-4cbb-bb55-673094cad238/BRR_Nov_Dec_10.pdf
Hi, peafunke, A "Rights Offering" provides existing shareholders the right to purchase newly issued shares... before the market.
This does dilute share value... but raises funds from us instead of from a new source.
A new source would probably insist upon cancelling the existing shares... us!
Just an example:
Hypothetically, they could double the outstanding shares.
The new shares are at a price where the company nets 3 cents per share.
They would raise over $13 million... from us.
That would payoff the debts, fund the EPC, and provide much-needed operating capital.
Existing shareholders who don't have money to buy the new issue could sell their "right" and cash out.
Granted, I've over-simplified this, but that's the basic process.
It's been done many times.
Hi, Topofplot, you are correct that there is still hope.
The fear and loss of share price is due to the possibility that the "white knight" you speak of will demand that our shares be cancelled and new shares be issued to secure the loan.
Conversely, it is possible that the board will turn to the existing shareholders for additional capital to pay off the debts and cover the cost of the EPC.
I'm still confident that Carlos and the Board members will recognize the value of getting the much-needed new financing from us instead of a new source.
Let's hope that they are investigating the merits of a "Rights Offering."
Hi, Swikey, I replied.
Swikey, are you still here?
Please email me.
I have an idea along the lines you mentioned.
timothy@newdaywealthprotection.com
codaras, I sent you an email, please review carefully and respond, thanks
You are right again, The Blues, and I admit that my perspective is overly optimistic.
But, it is a genuine possibility.
In most cases, the re-organization plan - agreed to by creditors and the debtor - calls for cancelling the existing shares.
Generally, the US Trustee simply approves whatever plan to which those parties agree.
It would be a rare exception if the possibility I described was agreed to by both parties.
Like you, I'll probably opt for the tax loss benefit if the board fails to see the benefits of a "Rights Option."
In the mean time... what can we do but hope?
You, codaras, have falsely characterized what I said.
Do you understand the duties of the US Trustee?
Do you understand the process of establishing a re-organization plan?
Do you understand that I made no mention of whether or not the POSSIBLE plan I described would be approved by the court?
Are you simply venting frustration?
Like you, I can do nothing about what happens to BION.
What's the harm in hoping for the best?
Hi, The Blues, you might be right and...
I might owe an apology to roni911 and all the others who have been sounding the alarm for quite some time.
There is only one last glimmer of hope.
The board is not required to cancel the shares and issue new ones.
Here's two possibilities:
#1 - It's possible that they care about their personal integrity and will choose to include the existing shareholders in the reorganization plan. They are well-aware that many of the shareholders are first-time investors whose priority was to support the "clean-tech" technology and "improve the world." They are aware that how they treat the existing shareholders will follow them... personally... and possibly affect the marketability of any new share issue. It's possible that they are not "greedy crooks" as they have been characterized.
#2 - There is an option that would enable them to protect the shareholders; payoff the existing debt; AND acquire the capital necessary to fund the EPC. Through a "Rights Offering," they could raise $10 million - from the present shareholders - that would not only payoff the present debt, but fund the EPC and get the bond sale moving forward. Hopefully, they will see the opportunity to establish massive, long term corporate value... in the form of Goodwill.
Yes, it's a long shot, but that's what I would be pursuing if I were a member of BION's board. Let's hope they care about their personal integrity and are investigating the merits and re-organizational benefits of a "Rights Offering."
Hopefully, peafunke, there will be a committee appointed by the court to represent the common stock holders.
It's not always done, but I suspect that many of the major shareholders are exploring this.
As I understand it, any of us can participate, but we are essentially at the mercy of whatever plan the court approves.
Stock cancellation is possible, perhaps likely in most cases, but I've decided to ride it out... all or nothing.
Hi, Gatorlady, I don't recall anyone characterizing you as "stupid."
As a matter of fact, I received numerous private emails from others here who pointed out that I was too hard on you... when I assumed you to be a member of the attack team trying to drive down BION's stock price.
I was wrong and apologized for making you feel unwelcome.
You played the sympathy card and claimed to only being here to "learn."
You gained sympathy from me and others because you convinced us that you only wanted to learn.
I and many other folks here endeavored to help you learn.
Subsequently, you disclosed your leadership role in local activist groups and your intent to stop BION and other biomass companies.
Granted, there are several here who want to see BION fail, but most here have invested hard-earned dollars in this company.
You are not "stupid," but perhaps you are mistaken to believe that what you have to say is going to be believed after being so deceptive earlier.
This is not a personal attack... I'm still trying to help you learn.
Perhaps you should consider winning others to your point of view with facts and rational logic instead of polemic rhetoric.
If BION fails, many of the good folks here - who tried to help you learn - are going to suffer significant personal losses.
That might be the case, peafunke, but it's also possible that it's another cost-cutting measure.
There will be little if any money available to pay directors.
Sabinson, for example, has served his purpose and gathered whatever evidence there is concerning any misconduct.
Anyone coming to the rescue with new money will want their folks on the board.
Board changes are common in the Chapter 11 process.
Hi, swikey, that's what I'm expecting to happen, but we smaller players will not be needed.
I suspect that such a loan is already in the works.
Those who might be interested in making the loan, probably insisted upon the Chapter 11 path to protect their interest.
I'm just guessing based on what I've seen before.
If there are parties prepared to loan say 5 or 10 million, it will be contingent upon the bankruptcy court placing a priority on their loan.
If a bailout loan is in the works, they are not going to transfer the funds until the court guarantees them a priority position ahead of all other creditors.
Again, I'm just guessing, but those are the terms that I would insist upon before making such a loan.
Hold your horses, roni911, it's too soon to give up all hope.
As I have stated, you might be right and things might turn out just as you predict.
However, it is now in the hands of a bankruptcy court and the purpose of Chapter 11 is to STAY all judgments and provide the company with breathing room to reorganize the debts.
Yes, if a path forward can't be reached it will end up as you say.
But, many companies have successfully utilized Chapter 11 to save the company.
As you said in an earlier post... "time will tell."
There's no silver lining but here's some more info on Chapter 11.
http://www.fullerlawfirm.net/Bankruptcy/Chapter-11/Advantages-of-Chapter-11.aspx
Here's a story on companies that came out okay after Chapter 11.
http://www.businessnewsdaily.com/8243-businesses-recovered-from-bankruptcy.html
Good one peafunke, that was indeed the look on my face when I saw the bankruptcy news :)
But... It ain't over yet.
Only time and events will tell if I was foolish or wise when I bought more yesterday.
Goodluck, everybody.
Hi, peafunke, it's too soon to know because they didn't file under Chapter 7 which would be liquidation.
Chapter 11 is a reorganization plan.
They're still fighting!
I suspect that trading on BION will be suspended today.
Here's some basic info on Chapter 11.
They could still work their way out of this. The bankruptcy buys time.
It's too soon to know, but this may enable keeping control of the IP.
http://www.investopedia.com/ask/answers/10/stock-holder-lose-equity-chapter-11.asp
If you can't read the WSJ story, here's more from Dow Jones Newswire.
BioNitrogen Files for Chapter 11 Bankruptcy Protection - By Peg Brickley
Fertilizer company BioNitrogen Holdings Corp. filed for chapter 11 bankruptcy protection Tuesday in Florida, where it has been working toward building plants.
A so-called clean-tech company, BioNitrogen was set up to produce fertilizer out of agricultural waste instead of using subterranean natural gas. The company estimated debt of $3.5 million and assets worth from $1 million to $10 million, in papers filed in the U.S. Bankruptcy Court for the Southern District of Florida.
In October, BioNitrogen was hit with a default judgment in favor of Annon Consulting Inc., a Canadian company that lent it $845,000 at 30% interest in December 2013. The debt to Annon is listed at $1.4 million in BioNitrogen's bankruptcy court papers.
The complaint Annon filed in federal court in Florida says the loan to BioNitrogen wasn't repaid. The suit was filed in January, but BioNitrogen didn't respond until May, when it blamed trouble in its senior executive ranks for the failure to address the litigation.
In court papers, BioNitrogen's lawyers said a member of the board of the directors who resigned in April, former president and chief financial officer Bryan Kornegay Jr., had been responsible for the litigation. Last year, Mr. Kornegay was charged with grand theft in excess of $100,000, but those charges ultimately were dismissed, according to a report BioNitrogen filed with the Securities and Exchange Commission.
However, an internal investigation of Mr. Kornegay's handling of BioNitrogen's securities, investor funds and related transactions led to allegations of misconduct, and Kornegay's resignation, SEC filings say.
Mr. Kornegay couldn't immediately be reached Wednesday.
Write to Peg Brickley at peg.brickley@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 04, 2015 07:37 ET (12:37 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
Hi, Swikey. Nope, I can't.
All I can say is that I have reason to buy more BION.
I CAN say that I have no inside info from the folks at BION.
The rumor came to me from other sources.
Rumor has it, and only a rumor, that conspiracy charges are being prepared for those involved with sabotaging BION.
I don't know if this is true. It's only a rumor at this point.
As I've said before, I just don't see the major players letting this HUGE opportunity slip through their fingers... because of a one million dollar debt.
If I'm wrong, I'm wrong... and will lose my money.
If I'm right, this will be one of my trophy trades to brag about.
This is no longer "investing."
I'm speculating on human nature.
I bought more BION today.
Presently, one can buy 100,000 shares of BION for about $500.
Yes, it's a gamble, but the risk/reward ratio is favorable.
Those are important facts to remember, mean weimeraner, thanks for posting.
I don't know the post# but BION's earlier argument, as articulated their attorney, challenged some of the judges conclusions and decisions. Maybe you or someone else here has a copy of his response. I don't at the moment. I'm going by memory.
The facts determined can't be appealed. But, appeals (and stays of judgement) are granted when the appeals court is convinced that the trial judge MIGHT have erred in interpretation/findings of applicable law.
If the appeal is granted, that buys time for BION's major players to scrape up the cash to pay the judgement.
If the appeal is denied they are on the 14 day deadline you mentioned.
It's just my guess that the odds are favorable for an appeal to be granted.
Hi, Roni911, perhaps you shouldn't be so quick to characterize me.
I am in agreement with your 2nd point in post# 13747
AND, I recognize that the 5 points you just posted MIGHT very well turn out to be correct.
I've encouraged no one to double down.
I merely disclosed why I am.
I fully understand that doing so is VERY risky.
I am under no delusions... I MIGHT lose badly... throwing good money after bad... as I have said.
But, then again, I might be right.
1 - There are sufficient grounds to challenge the judge's decision on appeal. The odds are favorable that a stay will be granted... pending the appeals process.
2 - A very competent career FBI agent (and currently a BION board member) has, by now, uncovered any possible links between the former president and the principals behind Annon. There may be new developments!
Question: If the company fails, how will you recover the $300k that you say is owed to you by BION?
You might be right, Cordaras, but you might be wrong.
We can only make guesses here.
I'm guessing that they'll take the money if paid in full.
(They have to consider the possibility of losing an appeal.)
If I'm right, and BION GETS A BRIDGE LOAN, I'll soon be way ahead.
If I'm wrong, I lose 30% more because of doubling down here.
Like I said, I'm speculating on human nature.
Hi, The Blues, you're right, I should have given more thought to that guess.
But, no matter how they raise the cash, I remain confident that the major players are scrambling to save their future profits.
I think the volume is high and, just guessing, it could be the major players selling off shares to raise cash for a bridge loan.
Hi, Peafunke, I'm not making any predictions, nor do I have any inside info.
But, I'm reasonably sure that those who stand to make tens of millions from BION's success are scrambling to solve the Annon problem.
Think about it. The cost of paying off Annon and the cost of the EPC are relatively minor costs... when you're expecting to gain tens of millions.
Buying more right now is pure speculation on human nature.
I just don't see the major players letting tens of millions slip through their fingers because of a one million dollar debt.
I'm speculating that SOMEONE (or a group) will scrape up the cash for a bridge loan... to make it to the bond sale.
I might be wrong, but the risk-reward ratio is favorable.
Again, I'm speculating on human nature.
Here's why I'm doubling my BION position.
1 - It's a dang good price right now!
2 - The fundamental factors that support the business model have not changed.
3 - Annon wants the money... not the patents.
4 - From among those who will gain millions from BION's success, SOMEONE will step up with the cash to pay off Annon as well as cover the cost of the EPC.
5 - The profit potential from each plant means - to me - that the present cash crisis is merely a temporary bump in the road.
You're right, Longgg, AND, let's not forget the Appeals Process.
Condolences, Gatorlady, on losing your father.
I lost both of my parents in recent years.
I know it's not easy.
Your speculation, traderwebb, is supported by a significant fact.
- They added a former career FBI agent to the board. -
His specialty and expertise are in identifying and building cases against white-collar criminals... specifically, embezzlement and money-laundering.