"ROFLMAO....not again.."....
Ironguts, I hear ya.
I've tried my best too, to "figure the math" on a supposed "share buyback" for this company- and can't for the life of me get it to "pencil out" or make a shred of sense?
1) The company now has about 640 MILLION shares outstanding, minimum.
2) So to have imaginary "share buyback" that "might" have a chance at making a dent in the dilution and affect the share price- lets suppose they, BHRT would try and do a 10% share buyback (not unusual amount/percentage when one sees other companies, big companies do share buyback programs).
So a 10% buyback would involve BHRT needing to purchase about 640 MILLION X .10 = approx 60 MILLION shares of their stock being bought back on the open market.
So, 60 MILLION shares would be about 60 million X .009 = $540,000 bucks worth. Yep, a cool half a $mil worth. Lets say they even attempted half that amount, a 5% share buyback, it's still a cool $250,000K worth or more.
HOW is a company that just completed it's fiscal yr 2014 with a grand total of $36K bucks in their bank account possibly going to do that? AND, that same company, in order to end the yr with that $36K cash, is already tapping a 100% dilutive Magna "credit line" for survival cash.
AND, that same company, BHRT, just did qty-3 more "toxic" convertible debt financing deals in early 2015 (Jan/Feb) for amounts of $38K and $25K from KBM World Wide, Fourth Man and now a new firm called Vis Vira- and all carry a 45% to 47% share discount on them.
BHRT can't scrape together $250K to $500K right now to save their lives IMO- they can't even "tap" the Magna $3 mil over 24 month "credit line" for that much at a time- as it would trigger their "draw down" limits and contract restrictions in the credit line deal. And tapping that line would just be creating 100% PURE DILUTION anyways.
So HOW, as you stated, would they, BHRT possibly "buy back" any meaningful amount of shares except using dollars that are MORE DILUTIVE than the very dilution shares they would be trying to "buy back"?
It's like bizzaro world math IMO? Makes no sense to me whatsoever. AND, the kicker to it all- is then recent "PR" releases saying they, BHRT may be making "investments" in some "new stuff" blah, blah but they're not even funding their own key trials at present and cut their own R&D spending by over $500K in 2014, and STILL ended the yr with a grand total of just $36K bucks cash, total cash in their bank account. Not even a mid priced, half way decent luxury auto- not even a used one probably nowadays.
NONE of it makes a wit of sense to me either. I just shake my head and ask, "HUH?". I mean it reaches a point where it's just past the "common sense" factor to me- unless me and you and others are somehow missing something in it all? But to me it's pretty straight forward numbers and math and it just doesn't "pencil out" no matter how I try and slice it?
And lastly, some say, "Well, that's looking in the rear view mirror, not the future, blah, blah". And again I ask, "WHAT?" The 10-K is CURRENT- it just "told the story" up through FEBRUARY of 2015, ONE MONTH AGO. It's not some distant "rear view" tale of old? That just filed 10-K is what's happening to them, BHRT TODAY. Like LAST MONTH- borrowing to no end and living off of continual dilution, RIGHT IN THE 10-K as of Feb 2015. How's that some "old" and "past, looking backwards" info and "not seeing the future" etc? To me it's their situation and reality RIGHT NOW, about as up to date a "snap shot" as one can possibly get- and none of it "adds up" IMO. Makes no sense trying to reconcile many of the "PR" statements and "slide show" stuff to that harsh reality of that VERY RECENT 10-K??
I can't figure it out. Makes no sense to me?
My .009 cents worth.
I agree with ya Iron- borrowing using "highly dilutive loans" to get the cash to buy back shares that originated because of prior use of "highly dilutive loans"? What, LOL? That's the ole scenario of using high interest credit card "A" in the wallet to "pay off" high interest credit card "B" and saying it's gonna lead to debt reduction and eventual prosperity or something? Something like that IMO? Won't work, and never works?
