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Imminent Q1 ER with calculated numbers by now. It is overdue although they sent a notification to SEC stating that there will be a delay since they were taking care of their court issues first. This week they are focused on possible bidders but they must have calculated the numbers by now to be able to answer inquiries from interested buyers.
They were expecting to turn almost profitable by Q3 so Q1 might be a positive surprise. That would be a very bullish event.
2-3 times the value compared to liquidation for creditors and other stakeholders is what it says.
But it compares also the cost of having to build a brand new plant. "The overall cost to produce a brownfield, 30 kta succinic acid plant in Canada is on the order of CAD$175- CAD$185 million. The Orderly Liquidation Value for the Sarnia facility represents 20 percent of this construction cost, while the Distressed Liquidation Value represents 17 percent."
"The majority of the equipment onsite was in very good condition after being built roughly two years ago. Nexant believes that the Sarnia plant has been well maintained since construction, with a better overall condition than many plants that Nexant has valued."
bioamber-009_060718.pdf
Make sure to convert from Canadian to USdollar for valuation when needed.
When you are calculating the full valuation be aware that the asset numbers the Monitor reports are limited to creditors sake and because other portions are up for negotiation during sale.
Be aware that the Monitor reports asset numbers that pertain to the issue at hand. The Monitor includes more comprehensive numbers that pertain to interested buyers in document bioamber-009_060718.pdf, stating:
“BioA's Company’s assets are comprised of its 30,000 Ton capacity Sarnia production facility, inventory, accounts receivable, trademarks, patents and other intellectual property, tax loss carryforwards (NOL), and other moveable assets.”
Last February, Nexant estimated the value of the Sarnia plant alone as an operating facility to be within the range of US$53.8 - 73 million (70-95 $Canadian). But for creditors considering the DIP, he limited the assets to relevant numbers just to demonstrate the difference in value with the DIP and without it. The court Monitor used the lowest plant valuation (CAN$70) on the DIP report and doesn’t include intangibles, nor forward revenues or other items that a buyer might consider.
It must accelerate to gap towards that upside! This stock price is far behind even when some calculating the valuation are failing to convert from Canadian currency into US dollars when needed.
I have calculated a minimum of $.14, and a fair bidding value of $.37 though I recognize there could be additional value added.
Could you show me where they indicated those assets could receive 2-3 times more than what was calculated? That is great.
Who'd pay that premium for their Intellectual Property?
It needs to be a big company with a healthy cashflow interested in producing those products.
According to Nextant, key potential buyers with strategic interest in these products, and hence the Sarnia asset, include: BASF, DSM, Cargill, Lygos, Genomatica, Myriant / PTT, Deinove, Amyris, Invista, CJ, ADM, Corbion, and Evolva.
Nextant actually indicated back in February that BioAmber has already been approached by a few companies, including 2 noted above, investigating potential to produce their products in the Sarnia asset. I personally suspect they are Myriant and their current supply partner Cargill. Although BASF loves to get hold of intellectual property and have deep pockets. Not sure why they didn't find Mitsui to be interested but Pwc did.
So it doesn't surprise me that they seem confident of getting a few bids. Like m0n heard the Monitor say to the judge during the June 20th hearing: "we are looking for a buyer” and “we believe there will be 2- 3”
But will they be able to get someone ready to pay a premium during such short time? It looks that a few have been interested for a while.
Intangibles are 4-6 millions raw based on recent documents but the appraisal of their specific patents, trademarks and intellectual property should be higher as a selling price.
When you are calculating the full valuation be aware that the asset numbers the Monitor reports are limited to creditors sake and because other portions are up for negotiation during sale.
The Monitor includes more comprehensive numbers that pertain to interested buyers in document bioamber-009_060718.pdf, stating:
“BioA's Company’s assets are comprised of its 30,000 Ton capacity Sarnia production facility, inventory, accounts receivable, trademarks, patents and other intellectual property, tax loss carryforwards (NOL), and other moveable assets.”
There is also revenue carry forwards when considering buying a company.
Low range valuation .14-.38 according to the latest numbers after converting from Canadian currency into US dollars. Monitor doesn't include all assets in calculations for creditors and uses the minimum value for the plant but on the first report it is stated:
“BioA's Company’s assets are comprised of its 30,000 Ton capacity Sarnia production facility, inventory, accounts receivable, trademarks, patents and other intellectual property, tax loss carryforwards (NOL), and other moveable assets.”
bioamber-009_060718.pdf
Having an active customer list and other intangibles should also be appraised and added in the sales price. I won’t include the NOL ($.31) because that would limit bidders to agree on a 49% merger instead.
18 interested companies that signed the NDA plus 2 that someone I think said heard the monitor say during the hearing are the ones interested in bidding to buyout Bioamber from page 19 on the same report you linked. Your page 13 shows how many lenders offered DIP financing.
Either way, they seem confident of getting a deal. They have gotten all this interest in a very short time.
The last Pwc report shows 18 interested bidders plus 2 more (I think someone said) mentioned during the hearing last week for a total of 20. Where do you see 22 plus 2 offers? That would be great. Links or pdf please.
Highly probable that Mitsui will buy them out. They didn't just gave away the plant. Bioamber assumed their debt, that's one of the reasons why we are in this situation now. Revenues have been increasing but barely on time. They were expecting to finally turn profitable on Q3. Mitsui and Bioamber remained strong partners after Bioamber took over the plant. They were actually planning to expand more prodiction throughout Asia together.
According to Pwc, Mitsui Chemical is one of the leading firms in bioplastics and is diversifically present in many bio-based petrochemical alternatives, including bio-succinic acid production. Gaining ownership of BioAmber will further anchor its global presence in the industry.
Jul. 2011: Dow and Mitsui JV to turn sugarcane into bioplastics at world’s largest plant (William Reed Business Media)
Feb. 2016: Mitsui & Co. Invests Additional $CDN25 Million in BioAmber Sarnia (Newswire)
Current partner Cargill would be the logical buyer according to that analyst on the video. He told mgt that company was worth more dead than alive back in November. Well, mgnt finally got convinced!
According to Nextant, key potential buyers with strategic interest in these products, and hence the Sarnia asset, include: BASF, DSM, Lygos, Genomatica, Myriant / PTT, Deinove, Amyris, Invista, CJ, ADM, Corbion, Evolva and guess who? Cargill of course.
Back in February, Nextant reported that BioAmber has already been approached by a few companies, including 2 noted above, investigating potential to produce their products in the Sarnia asset. Hum, I wonder who besides Cargill. I am thinking of Myriant.
Myriant is currently in the process of evaluating plan to build plants in key geographies across the globe for the production of bio-succunic acids and other high-value, green specialty chemicals in large established markets
Bioamber probably accepted these quick SISP deadlines to get the bids going because they probably knew of companies that were very interested in them already and are confident they will get at least a few LOIs. They got many interested bidders in a short time. That's a good thing!
Highly probable that one LOI comes from Mitsui. Mitsui is obviously interested in submitting a LOI to bid since they are very involved in the bio market in partnership with Bioamber. But why do you think they didn't try to buy them before?
Pwc reports that they are one of several possible buyers, imo probably the most interested one. "Mitsubishi Chemicals is currently pursuing organic and acquisition investments in biobased petrochemical alternatives through internal R&D and joint ventures. The firm has already demonstrated proven interest in bio- succinic acid through its partnership with BioAmber.
April 2011: BioAmber Partners with Mitsubishi Chemical in Succinic Acid
Feb 2018: Mitsubishi Chemical Starts Full scale Sales of New Grade of ‘DURABIO’ Bio-based Engineering Plastic for Bottles
Generated many interested bidders in a short time. That's most significant. Many companies probably from the list you refer to.
Last Monitor report showed 18 interested bidders plus 2 more he added at the hearing. This process often takes months and they can get extension if needed but they probably accepted these quick deadlines because they probably knew companies that are really interested in them.
Last February, Nextant indicated that a few companies investigating potential to produce their products in their Sarnia plant have already approached them.
"BioAmber has a number of strategic and financial investors evaluating an investment as part of the SISP. We are optimistic that the closing of a transaction will provide our customers long term supply assurance from the Sarnia facility.” They seem confident in the PR from June 18
Can NOL be applied in case of liquidation?
Or does it need to be applied to income before?
The plant value if they do a liquidation is US$35
Their NOL is valued at $40 million dollars or $200 million of tax free earnings. About .31 /share.
But Bioamber has to maintain 51% ownership for NOLs to remain intact.
CCAA Canada = Chapter 11 US since both cover corporate restructuring under court proceedings and have similar impact on shareholders. It is why they had to state on the most recent court document that there is no guarantee that shares will keep any value at the end. Reorganizations are technically not bankruptcy unless it turns into liquidation which in the US is Chapter 7 and in Canada is what is considered bankruptcy BIA.
What is bankruptcy protection?
Canadian companies don't actually file for "bankruptcy protection" when they go to a Canadian court to seek protection from their creditors. They do file for protection from their creditors under the inelegantly named Companies' Creditors Arrangement Act. That's a federal law that basically gives a company time to try to work out its financial difficulties with its creditors.
A company files under the CCAA for permission to come up with a restructuring or reorganization plan that would give it time (often 30 to 90 days) to rearrange its affairs so that it can keep operating.
What happens to shareholders?
Holders of common stock are typically last on the list. Quite often in CCAA proceedings, they get back none of the money they invested. Their old shares become worthless and often new shares are issued in the restructured company.
Holders of preferred shares rank ahead of common shareholders in terms of creditor priority (hence the title "preferred") but often do not get back the full value of their shares.
What's the difference between CCAA and Chapter 11?
While Chapter 11 and CCAA both cover corporate restructurings, differences do exist.
The main difference is that American companies under Chapter 11 are able to get labour contracts rewritten as part of their restructuring; Canadian companies under CCAA protection usually must abide by existing contracts. Chapter 11 is a detailed piece of legislation that has specific statutory requirements. CCAA is much more general and gives a Canadian judge much more leeway.
http://www.cbc.ca/news/business/when-a-company-tries-to-reorganize-1.790181
Q. I hold stock in a company that appears likely to file for reorganization under CCAA. What happens to my investment?
A. Holders of common stock are typically last on the list and often get none of their investment back. Holders of preferred shares rank ahead of common shareholders, but often do not get back the full value of their shares. The CCAA allows a company to include shareholders in its reorganization plan and they then typically can vote on the proposal.
http://www.segalllp.com/2016/11/04/quick-guide-bankruptcy/
There are several examples you can find in Canada where shares were canceled after emerging from CCAA proceedings.
Canadian oil sands company files under CCAA
Current shareholders will have their stock canceled and be given warrants to acquire up to 20 percent of the new class of common shares.
https://www.reuters.com/article/opticanada/update-1-opti-canada-files-for-creditor-protection-idUSN1E76C17Z20110713
https://www.theglobeandmail.com/globe-investor/investor-education/shareholders-bankruptcy-and-goodwill/article1202302/
So CCAA is a reorganization proceeding just like Chapter 11 is in the US hoping that the company can remain operating instead of going under and shutting down (Chapter 7 in the US and Bankruptcy insolvency process under the BIA in Canada). It would be nice if FINRA takes that Q out of the ticker since BIOA is off US Chapter 11 even though CCAA is still a reorganization and they applied for Chapter 15. Yet at the end we are in the same situation at the end.
Visit the links above.
Canadian proceeding is the same as US Chapter11. There was dismissal of case in US court so they can continue the same restructuring in Canada instead. The CCAA proceedings in Canada although not called "bankruptcy" in the sense of liquidation (Canada BIA) right now, has similar objectives and consequences as US Chapter 11.
What if big company just buys the shares?
Wouldn't it be more convenient for one of these giants interested in buying them out to just buy over 51% of the shares to take over the company instead of having to deal with the bidding negotiation?
A positive surprise Q1 ER may appear anytime. I suspect they already have the numbers since the Monitor have been answering those types of questions from the 20 possible bidders. They requested an extension to comply with earnings reporting back in May. This was the time when they expected higher revenue to the point of turning almost profitable by Q3. PR may come ahead of other catalysts.
This is way behind the projected upside but it is going to need more than the crowd here. With 20 companies interested in buying them out and minimum 5x equity residual after creditors are paid, this could eventually attract deeper pockets.
Yesterday's snowball sellout made be analyze support levels. I like being honest with reality but I am fully in. I don't intend to make comments to manipulate but to help ppl be careful in case. I am open to contrarian opinions and learn but often do a lot of reading and research before posting an opinion.
Happy trading next week!
Strong Friday reversal never went below yesterday's lows. I agree. Traders felt price level wasn't justified. Actually it is far behind the obvious upside ahead. It will probably accelerate the bull trend next week but I agree, it should not breakout the trend too high because it will signal trader's RSIs alerts.
Positive surprise Q1 ER could appear anytime now since they obviously have done the numbers to be able to answer inquiries from buyout bidders. This stock price is still way behind the residual equity expected from the buyout.
It finally broke free from the bear range to resume the bull trend from 4 days ago but needs new longs that know about the prospects here. It won't run after the obvious upside with just daytraders. If there is no big selloff at close like it often happens with this stock, it will be a positive change especially on a Friday!
This price is way behind the residual equity expected after paying creditors from the buyout.
Monitor reports just get the basics restated for creditors sake. You need to consider the rest of the valuables in a buyout. Accounts Receivables and cash have been evaporating, though it can increase as they are in production again. In some assessments you see intangibles, which can include patents and intellectual property but may not included in other reports because those are negotiables in a buyout. After converting into US dollar and using the most recent docs (June13 + Nexant) I get:
Plant $53.8 low – $73 premium Averaged at 63.4
Inventory $2.4
Cash $0.4
A/R $1.7
Total Assets: $67.9
Debt: $51
Equity: $16.9
Conservative Value per Share: $0.13
Added buyout deal:
Patents $4
At least 1yr Forward Revenue $20 from their active order pipeline (some add 2)
Plant at $70+ premium due to bidding war
Total Assets: $98.5
Equity: $47.5
Premium Value per Share: $0.37
Having an active customer list should also be appraised and added in the bidding price.
I won’t include the NOL ($.20) because that would limit bidders to agree on a 49% merger instead. Account receivables can increase from recent succinct acid sales.
Please review.
Pass .045 to break free from bear range and resume 2nd leg of bull trend. After breaking resistance at .04 it is possible. Otherwise it may break free from bear range by Monday with a strong closing today.
May breakdown again with low volume and right in the middle of the strong bear range that began 3 days ago. It remains doji and not sure if it has what it takes to breakout today. If people found this level unjustified it would have bounced by now. Overall market is skittish especially on a Friday like this is.
Crowd here won't be enough to lift this up. Doubt a PR shows on a Friday. Good signal if remains sideway for a while and a good close today.
.019 is next chance for support if 200ma fails which it is almost breaking. It is wedging against it .019 is the fib if you set it from the last day before liftup few days ago at .00056
I am not sure we will see any strong bounce back soon either way. Wish for a strong close.
FINRA considers reorganization court proceedings the same for Q on ticker even if CCAA is not technically a bankruptcy in the sense of US Chapter 7 liquidation it is like US Chapter 11 with similar impact on shares at the end. The question is if FINRA adds the Q to Canadian companies that file for CCAA. Ask them. As far as I read CCAA is the equivalent of Chapter 11 in the US. The difference is that they call only their BIA proceedings (= US Ch7 liquidation) bankruptcy but we call all proceedings bankruptcy.
Fibonacci at .019 is on sight if 200ma breaks down. No sustained reversal without strong sustained volume. Don't expect the recent daytraders and flippers to reenter soon. The crowd here won't be enough. It needs heavier pockets and those tend to wait closer to catalysts. Where's the bottom is the big question.
A test coming midmorning low volume won't help to bounce back. 200 ma under attack.
It needs more new investors aware of this care for reversal otherwise will keep bleeding in the next days.
Low interest will keep this bleeding unless new buyers show up.
Perhaps closer to catalysts next week.
Be careful with the bear trend that started 3 days ago.
Wish for a better close today!
Will the nose dive halted by closing bell resume today?
There were not many buyers yesterday and about 50% of the .005 holders started to bailout fearing the non factual comments, the far ahead catalysts and lack of volume on bounce. New smarter traders needed before this keeps bleeding. There is no support on sight except the Fibonacci at .019
It looks bear trending for the last 3 days. Be careful out there. Mid morning will be a test and how well it closes.
Canadian CCAA same as US Chapter11 even if they don't call it Bankruptcy. They call bankruptcy their BIA process which is similar to US Chapter 7 for liquidation. CCAA is a court proceeding for restructuring same as US Chapter 11 reorganization with similar impact of shares. Shares can be canceled or devalued at the end of the CCAA proceedings same as Chapter 11. Additionally Bioamber filed for US Chapter 15 Bankruptcy.
Read what lawyers in Canada know.
What is bankruptcy protection?
Canadian companies don't actually file for "bankruptcy protection" when they go to a Canadian court to seek protection from their creditors. They do file for protection from their creditors under the inelegantly named Companies' Creditors Arrangement Act. That's a federal law that basically gives a company time to try to work out its financial difficulties with its creditors.
A company files under the CCAA for permission to come up with a restructuring or reorganization plan that would give it time (often 30 to 90 days) to rearrange its affairs so that it can keep operating.
What happens to shareholders?
Holders of common stock are typically last on the list. Quite often in CCAA proceedings, they get back none of the money they invested. Their old shares become worthless and often new shares are issued in the restructured company.
Holders of preferred shares rank ahead of common shareholders in terms of creditor priority (hence the title "preferred") but often do not get back the full value of their shares.
What's the difference between CCAA and Chapter 11?
While Chapter 11 and CCAA both cover corporate restructurings, differences do exist.
The main difference is that American companies under Chapter 11 are able to get labour contracts rewritten as part of their restructuring; Canadian companies under CCAA protection usually must abide by existing contracts. Chapter 11 is a detailed piece of legislation that has specific statutory requirements. CCAA is much more general and gives a Canadian judge much more leeway.
http://www.cbc.ca/news/business/when-a-company-tries-to-reorganize-1.790181
Canadian oil sands company files under CCAA
Current shareholders will have their stock canceled and be given warrants to acquire up to 20 percent of the new class of common shares.
https://www.reuters.com/article/opticanada/update-1-opti-canada-files-for-creditor-protection-idUSN1E76C17Z20110713
https://www.theglobeandmail.com/globe-investor/investor-education/shareholders-bankruptcy-and-goodwill/article1202302/
So CCAA is a reorganization proceeding just like Chapter 11 is in the US hoping that the company can remain operating instead of going under and shutting down (Chapter 7 in the US and Bankruptcy insolvency process under the BIA in Canada). It would be nice if FINRA takes that Q out of the ticker since BIOA is off US Chapter 11 even though CCAA is still a reorganization and they applied for Chapter 15. Yet at the end we are in the same situation at the end.
FINRA adds the Q on companies that file in court for reorganization, if they decide CCAA is not reorganization proceeding, can Bioamber start diluting shares?
Shares can be canceled in Canadian CCAA or lose all their value the same as in US Chapter 11.
Both Canadian CCAA and US Chapter 11 have similar impact at the end on the shares of a stock. FINRA may look at both the same in regards to the Q on the ticker. Chapter 11 and CCAA are equivalent court proceedings as both cover corporate restructurings in similar fashion. Canadians seem to call bankruptcy (BIA) to our equivalent Chapter 7 liquidation process.
What happens to shareholders?
Holders of common stock are typically last on the list. Quite often in CCAA proceedings, they get back none of the money they invested. Their old shares become worthless and often new shares are issued in the restructured company. Holders of preferred shares rank ahead of common shareholders in terms of creditor priority (hence the title "preferred") but often do not get back the full value of their shares.
There are several examples you can find in Canada where shares were canceled after emerging from CCAA proceedings.
Canadian oil sands company files under CCAA
Current shareholders will have their stock canceled and be given warrants to acquire up to 20 percent of the new class of common shares.
https://www.reuters.com/article/opticanada/update-1-opti-canada-files-for-creditor-protection-idUSN1E76C17Z20110713
https://www.theglobeandmail.com/globe-investor/investor-education/shareholders-bankruptcy-and-goodwill/article1202302/
Do your research.
Canadian proceeding CCAA equals US Chapter 11 bankruptcy reorganization.
US Chapter 7 bankruptcy liquidation equals Canadian BIA proceeding, what they call bankruptcy.
What is bankruptcy protection?
Canadian companies don't actually file for "bankruptcy protection" when they go to a Canadian court to seek protection from their creditors. They do file for protection from their creditors under the Companies' Creditors Arrangement Act. That's a federal law that basically gives a company time to try to work out its financial difficulties with its creditors.
What happens to shareholders?
Holders of common stock are typically last on the list. Quite often in CCAA proceedings, they get back none of the money they invested. Their old shares become worthless and often new shares are issued in the restructured company. Holders of preferred shares rank ahead of common shareholders in terms of creditor priority (hence the title "preferred") but often do not get back the full value of their shares.
What's the difference between CCAA and Chapter 11?
While Chapter 11 and CCAA both cover corporate restructurings, differences do exist.
The main difference is that American companies under Chapter 11 are able to get labour contracts rewritten as part of their restructuring; Canadian companies under CCAA protection usually must abide by existing contracts.
Chapter 11 is a detailed piece of legislation that has specific statutory requirements. CCAA is much more general and gives a Canadian judge much more leeway.
http://www.cbc.ca/news/business/when-a-company-tries-to-reorganize-1.790181
https://www.theglobeandmail.com/globe-investor/investor-education/shareholders-bankruptcy-and-goodwill/article1202302/
Not my opinion.
US Chapter 7 Liquidation = Canada insolvency BIA
What reorganization is in the US (Chapter 11) is CCAA in Canada with the same impact on shareholders.
In Canada insolvency that leads to liquidation and shutting down is considered bankruptcy under BIA, the same in the US with Chapter 7.
Did you read what I wrote?
These are reports from Canada explaining it to you:
What's the difference between CCAA and Chapter 11?
While Chapter 11 and CCAA both cover corporate restructurings, differences do exist.
The main difference is that American companies under Chapter 11 are able to get labour contracts rewritten as part of their restructuring; Canadian companies under CCAA protection usually must abide by existing contracts. Chapter 11 is a detailed piece of legislation that has specific statutory requirements. CCAA is much more general and gives a Canadian judge much more leeway.
What happens to shareholders?
Holders of common stock are typically last on the list. Quite often in CCAA proceedings, they get back none of the money they invested. Their old shares become worthless and often new shares are issued in the restructured company.
http://www.cbc.ca/news/business/when-a-company-tries-to-reorganize-1.790181
http://www.segalllp.com/2016/11/04/quick-guide-bankruptcy/
There are several examples you can find in Canada where shares were canceled after emerging from CCAA proceedings.
Canadian oil sands company files under CCAA
Current shareholders will have their stock canceled and be given warrants to acquire up to 20 percent of the new class of common shares.
https://www.reuters.com/article/opticanada/update-1-opti-canada-files-for-creditor-protection-idUSN1E76C17Z20110713
https://www.theglobeandmail.com/globe-investor/investor-education/shareholders-bankruptcy-and-goodwill/article1202302/
Can they dilute shares under CCAA proceedings to get some cash since they are out of US Chapter 11?
Can US shareholders still claim capital loss with the IRS when shares of a foreign company get cancelled if they are not technically BK?
CCAA Canada = Chapter 11 US since both cover corporate restructuring under court proceedings and have similar impact of shareholders. It is why they had to state on the most recent court document that there is no guarantee that shares will keep any value at the end. Reorganizations are technically not bankruptcy unless it turns into liquidation.
What is bankruptcy protection?
Canadian companies don't actually file for "bankruptcy protection" when they go to a Canadian court to seek protection from their creditors. They do file for protection from their creditors under the inelegantly named Companies' Creditors Arrangement Act. That's a federal law that basically gives a company time to try to work out its financial difficulties with its creditors.
A company files under the CCAA for permission to come up with a restructuring or reorganization plan that would give it time (often 30 to 90 days) to rearrange its affairs so that it can keep operating.
What happens to shareholders?
Holders of common stock are typically last on the list. Quite often in CCAA proceedings, they get back none of the money they invested. Their old shares become worthless and often new shares are issued in the restructured company.
Holders of preferred shares rank ahead of common shareholders in terms of creditor priority (hence the title "preferred") but often do not get back the full value of their shares.
What's the difference between CCAA and Chapter 11?
While Chapter 11 and CCAA both cover corporate restructurings, differences do exist.
The main difference is that American companies under Chapter 11 are able to get labour contracts rewritten as part of their restructuring; Canadian companies under CCAA protection usually must abide by existing contracts. Chapter 11 is a detailed piece of legislation that has specific statutory requirements. CCAA is much more general and gives a Canadian judge much more leeway.
http://www.cbc.ca/news/business/when-a-company-tries-to-reorganize-1.790181
Q. I hold stock in a company that appears likely to file for reorganization under CCAA. What happens to my investment?
A. Holders of common stock are typically last on the list and often get none of their investment back. Holders of preferred shares rank ahead of common shareholders, but often do not get back the full value of their shares. The CCAA allows a company to include shareholders in its reorganization plan and they then typically can vote on the proposal.
http://www.segalllp.com/2016/11/04/quick-guide-bankruptcy/
There are several examples you can find in Canada where shares were canceled after emerging from CCAA proceedings.
Canadian oil sands company files under CCAA
Current shareholders will have their stock canceled and be given warrants to acquire up to 20 percent of the new class of common shares.
https://www.reuters.com/article/opticanada/update-1-opti-canada-files-for-creditor-protection-idUSN1E76C17Z20110713
https://www.theglobeandmail.com/globe-investor/investor-education/shareholders-bankruptcy-and-goodwill/article1202302/
So CCAA is a reorganization proceeding just like Chapter 11 is in the US hoping that the company can remain operating instead of going under and shutting down (Chapter 7 in the US and Bankruptcy in Canada). It would be nice if FINRA takes that Q out of the ticker since BIOA is off US Chapter 11 even though CCAA is still a reorganization and they applied for Chapter 15. Yet at the end we are in the same situation at the end.
It actually crossed below the 200 ma closing above it because it ran out of time to drop further. Agree. Not many buyers today and many .005 holders were wandering what to do. They see the low volume, negative non-factual comments, become anxious that catalysts are far ahead and sell to keep the profits.
Tomorrow is Friday and usually no one will want to be exposed over the weekend on a down market like this unless new smarter traders that know about this case show up or some positive news arrive. .019 seems to be the next Fibonacci retracement. Be careful out there. There doesn't seem to be any support level right now. Nor big money buyers waiting at any entry point yet.
50% of .005 holders lost faith and rather cash profits. Low volume tomorrow can be another killer on a Friday and if overall market stays down. It can continue to nose dive. A good close tomorrow may set the tone for next week, otherwise the bleeding may continue until closer to catalysts. If it drops under .019 many more may panic and abandon ship. Typical of penny stocks, many become suspicious and hysterical over negative non-factual comments as they see no reversal on sight. Many sell on insecurities based on nothing.