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And that has absolutely nothing to do with BioAmber or its shareholders.
OMG, they're going to give this "unsecured creditor" $2k for a debt that is $1588!!! That means they've got a lot of extra money from this invisible transaction that they're keeping a secret from the bankruptcy courts!!! They may have enough money to buy LCY, Visolis, KKR, and Amazon!!!
NOT. Sheesh.
This is very simple. Find a statement by the monitor to the court that they expect to be able to pay off all the debt rather than connecting dots in the sky. If they have or expect funding that will pay off all the debt, they'd have said it clearly and directly.
And the beat goes on...
There’s no statement, motion, or order from the monitor or court that says “your honor, we’re going to pay off all the debt, now, with your approval.” Instead, we think payment of the debt has been somehow kept off the books and PWC is just messing with us by putting clues to it sprinkled around other documents. “Hey, look, I found a $2k settlement with an unsecured creditor related to some lease that was unpaid. That means they paid the secured creditors $40M and we’re gonna be rich!!!”
Ok, we’ll go back, then, to all those original fluffy PR’s when the merger happened. What did they say they were going to do? Remember “offering on NASDAQ?” Remember the plans for expansion?
Look, if you consider what I’m suggesting, it is giving this enterprise some credit for legitimacy that has not been earned. If this company went public to grow their business, they’re going to sell stock, and that will dilute the current O/S probably 100x or more. If the do it right, they’ll get what they need.
These shares traded today do them no good, they’re already sold into the market by the previous owner of the shell, and that money is gone. They can’t and didn’t leave that equity standing, they did the RS and now it is less than 1% (way less) of the A/S. A stock sale is coming.
Guess what?
If they convert and sell, those shares will then be counted in the O/S of the common shares and, depending on how the price holds up to the dilution, the market cap may actually go up. The preferred shares don’t figure in the math for market cap.
Guess what else? If they sell stock from the treasury and raise cash, they can use that to pay for an acquisition for companies that prefer it, which is most of them.
Guess what else? They can use cash to pay the expenses of expanding themselves, maybe into the US, like they said they wanted to. Sure can’t use stock for that.
This company or its owners or both are going to sell stock.
Nice story. Buying stock on the OTC still doesn’t fund LDSR, it’s funding Blue Citi.
There's a lot of shares in the treasury to sell to the public.
Best thing to do is watch for the registration statement to sell stock, because it is over for the common shares currently outstanding then. They're making moves, have the financial information done and audited.
No, I did not ask why private companies go public.
If Inter-M or, well, anybody provides capital to this company, in return they either receive equity (stock) or enter into a debt instrument of some sort. They can do either with a private company as well, so this wasn't done so that Inter-M could invest more money, this was done so that they could get capital from the public markets.
If anything, those who have equity in a private company already will get more of an opportunity (you call it liquidity) to sell their stake in the company in the public market, but that sale provides the company no working capital since they aren't the seller of the stock. If WDBG went public to register and allow the holders of the preferred A shares (that aren't affiliated with the company, such as the CEO) to convert and sell to the public, then it would make some sense, although it will be heavily dilutive to the existing share structure with only 138k shares out.
NO MATTER WHAT, this company went public for somebody to sell stock, whether it is the owners (the preferred A holders) or the company or both. The 138k common shares currently outstanding will be diluted down to probably 1% of the outstanding equity in this company.
Good luck.
Yes, but the stock traded today was sold into the public market by NHPI, they got the capital from that sale, and, of course, they failed and that money is gone. WDBG received no benefit from those shares, so of course they did a RS to wipe it off the books.
So, if a private investor is going to invest private money, why the heck did they go public? And, especially, why the heck did they go public by merging into a shell that had stock outstanding? You know that essentially gives ownership of the company to the bagholders of that shell's prior enterprises, right?
No, I expect Inter-M was given shares because they held stock in the private company already. The only reason to go public in any form is to get access to the public markets, sell stock, and raise capital to invest in your business for growth.
Buying in the market isn’t helping fund anything except Blue Citi or some other current shareholder. Once the company sells the stock to the public, they get nothing more from it. In this case, they took out a loan with horrible terms, already got those funds years ago.
LOL
Methinks there’s a misunderstanding of what market cap is. See, they don’t have that money, in fact they only have $88k in cash. They have to sell stock to raise money (or take out a loan, or profit would do, but they only made $170k of that last year).
Couldn't care less. They bought the assets in the liquidation. That purchase does not give either BioAmber or its shareholders any stake in the ongoing business of those companies.
Have shares left in your account?
Then the company has not sold. In order to buy the company, they'd have to buy the shares. Plus, the monitor has been clear that only the assets were sold in the liquidation, and there are no transactions that have occurred or are occurring involving the shares.
No matter now many times these irrelevant snippets of documents are posted up, the whole story is that, after the asset liquidation, BioAmber is an empty shell with no operations and no income to even put a dent in its massive debt. All that anybody has to do is read the whole of the 10th and 11th monitor's reports (the latest status of the proceedings and the financial state of the company) to conclude this company will no longer exist at the conclusion of the bankruptcy proceedings.
Companies that are in bankruptcy proceedings with large debt and no sources of income don't survive. Ever.
No, I didn't miss them. Doherty having voting control with his Preferred shares was known. The rest of the owners of preferred shares must have been given them for debt, so they'd be vulnerable to conversion. The small holders (especially the CEO when this was NHPI) will very likely convert at the first opportunity, possibly with the same registration that the company will sell stock and raise money.
If they don't have a need to raise money by selling stock, there was no reason to go public.
Yeah, $170k net profit isn't exactly the HUGE company that was being pumped when the reverse merger happened. Market cap/PPS is just about right, which is unusual for the OTC. $88k in cash makes acquisitions a bit dicey.
Seeing as how they had 2 years of data, did a RS to wipe out the old legacy shares, it looks like preparations are being made to sell stock. Should see some sort of SEC registration next.
There's not one single think about Visolis, LCY, KKR, or any of those pictures you've posted that has anything to do with BioAmber, the empty, debt ridden shell company. They bought the plant in the liquidation sale, that's done, and neither BioAmber nor its shareholders have any stake in those companies.
No, not referring to you, just looking at the trade action and reacting to your posted surprise. My comment was simply on the trade action that appears to have taken a thin ask and, with less than $2k, moved the PPS a lot. Of course, the L2 bid was likely just as thin, so whoever chose to do that will have a hard time selling for a profit on a stock that's been dead in the water for some time.
LOL. Somebody sure is trying to give the illusion of interest in the stock.
You tell me. Are they listed as a subsidiary in the recently filed 10K? If yes, then yes. If no, then no.
This is the last 10K
https://www.sec.gov/Archives/edgar/data/1534287/000156459018007185/bioa-10k_20171231.htm
The 10K/A was an amendment to that 10K and was submitted for this purpose:
Blue Citi has a convertible note, original value of $125k, that converted at a price of $0.00005 whenever they chose to do it. That's 2.5B shares. I haven't studied the 10K yet to see what remains, but last I saw $75k remained for 1.5B shares. That means they've converted and very likely sold 1B shares.
Now, tell me if the share price history over 2018 and even this CY would provide them a profit on that $125k note.
To be clear, Jason is not manipulating the share price downward. If he is, shareholders should sue to have him removed. That's ridiculous.
Jason should be focused on the $20+k of revenues for all of 2018, the year of golden opportunity with the implementation of the GDPR regulation and other opportunities in data protection. That sort of sales revenue indicates his products aren't selling jack. Improve company sales and performance, and not by buying some overpriced dying company that just happens to have some sales and revenue still trickling in, and the share price will follow naturally.
Blue Citi has been very patient, converting a few thousand bucks into a couple hundred million shares and easing them into the market.
How do you think the O/S made its way up to over 6B? Magic?
Sorry, should have clarified. No, I don't think the trading today is a lot of dilution from the offering, I do think the trading that slammed the price down into the upper $2's was from the offering because they're selling the warrants at the same time and had an overall profit for each block purchased @ $3.13, or whatever it was. There was mention of a discount for AGP to $2.91, as well.
Another consideration is that AGP was allowed to short the stock, and may have done some of that before the slam down to this range and are profiting handsomely from it.
The market is speaking loudly about what the company is worth. It is time to listen.
LOL
$28k in revenue for 2018!!!
Over 6B shares in the O/S
Can't wait to read the rest of this.
No doubt whatsoever the selling is from the offering, and even if all the volume for the week was from that offering (and it isn't) it is very likely they're not done, there's a lot of shares left.
I wonder how many shares constitute the $10M in stock. Was that @ offering price? If so, SC may be the ones re-negotiating.
Attention new visitors: Interested in buying stock and enriching the retirement portfolios of the 1 or 2 people in this company? They have 1 billion (yes, that's a B) shares for sale @ $0.005, all you could possibly want. Yeah, that's about 5X the current O/S and a lot of dilution, so you'll probably be stuck with them, but, hey, why be stuck with shares @ $0.01 when you can be stuck with twice as many?
Just contact the CEO, only requirement is that you purchase 200 shares (a dollars worth). His information in on the web.
And, once again, most all of the monitor's reports to the court include the cash flow and financial statements for the company. They show the current status of the collection of the accounts receivable, the sale of remaining inventory, and payments of the obligations of the company. They're right there for anyone to see, but some choose to ignore that because it doesn't fit the fantasy that somehow an empty, debt ridden shell is going to survive bankruptcy proceedings.
This company has no operating assets, no income, and can't even come close to paying its secured debt, much less the unsecured debt and other obligations. Once this returns to the US courts in that state, the judge will discharge the remaining debt along with the equity (all classes of stock). The company will then cease to exist.
That's how it works, and that's what happens every time.
Shareholders will lose 100% of their investment in this stock. There's no doubt.
So, with the discount to the underwriter, their fees, the payment to the loan sharks they owe, and the acquisition, what does that leave them for operating capital, $1M or so? That’ll pay for about a month of operational expenses at their burn rate.
And nobody, not one single entity, submitted a bid for the company nor the shares. The assets were all that anyone were interested in, and that’s what was sold in the liquidation.
And, once again, BioAmber, Inc., that you hold shares in, is a US company in bankruptcy. The CCAA resulted in liquidation of the assets for $4.34M, so the company and its subsidiaries is now an empty shell with debt that it cannot pay. When the proceedings return to the US bankruptcy court and judge, that remaining debt will be discharged along with the equity (shares) and investors will lose 100% of their investment.
All the contractual rights were ponied up to the purchaser of the assets and if they had been willing to pay the royalties that were due, $408k, they’d own those rights by assignment of the court. There is no value there that will come even close to paying all the debt and giving shareholders a penny of recovery.
All of the accounts receivable from all 3 entities is summarized on the cash flow sheets as well as the disbursements to pay the bills and for the proceedings. It’s all there, there is no secret pot of gold that is going to pay the debt.
That simply means you didn't click the link and go to the page to read what the monitor has stated.
Let me narrow it down a little more:
PAGE 3, ITEM 10 of this report:
https://www.pwc.com/ca/en/car/bioamber/assets2/bioamber-049_020819.pdf
That is a direct answer to your question.
Here's your answer:
https://www.pwc.com/ca/en/car/bioamber/assets2/bioamber-049_020819.pdf
Section A beginning on page 3 talks all about it.
The assets were liquidated, they're gone, sold for $4.34M.
And the only payment towards any debt has been the $3.5 interim payment the judge authorized here:
https://www.pwc.com/ca/en/car/bioamber/assets2/bioamber-046_121718.pdf
As far as the accounts receivable, most every monitor's report has included a cash flow sheet showing the collection of those funds as well as the payments made which has consumed it. They've been spending about $1.5M per report. Here's a link to all of the reports, the cash flow sheets are easy to find:
https://www.pwc.com/ca/en/services/insolvency-assignments/bioamber/monitor-s-reports.html
If as much attention is paid to the detail of those cash flow sheets as has been paid trying to construct wild theories about an empty bankrupt shell company emerging from bankruptcy, I expect a light to come on that the shares are as worthless as the monitor has explained.
That summary came from the 10th monitor's report issued in February and is current. Remember? It was the one the monitor put out to squash all the BS about the company being sold or some fantasy transaction happening out of the view of the court and judge that paid off all the debt and gave shareholders a recovery.
Here's a link for anybody that wants to read about where the company is heading:
https://www.pwc.com/ca/en/car/bioamber/assets2/bioamber-049_020819.pdf
BioAmber's current status is bankrupt. There's no question. The assets were sold in liquidation for $4.34M. There are no more operations, no sources of income, to pay the debt owed.
Once the checks are written for the small recoveries of the 2 secured creditors who get anything, this returns to the US bankruptcy court for the final discharge of the remaining debt and the equity (the shares). The company disappears after that, and shareholders lose 100% of their investment in this stock.
PWC HAS STATED THE COMPANY'S ASSETS WERE SOLD IN LIQUIDATION
PWC HAS STATED THE PROCEEDS FROM THE LIQUIDATION AND ALL SOURCES WILL ONLY PROVIDE 2 SECURED CREDITORS A SMALL RECOVERY
PWC HAS STATED THE REMAINDER OF THE SECURED CREDITORS GET NOTHING
PWC HAS STATED THE UNSECURED CREDITORS GET NOTHING
PWC HAS STATED THE SHAREHOLDERS GET NOTHING