$8.50 FIRM = Tender must be GOING SO FREAKING WELL-
That Astellas didn't even feel the need to offer so much as a 10 FREAKING CENT increase in their offer = strong initial share count data from Citi-bank IMO. Citi likely advised them just extend and hold the price and the shares are coming in, in sufficient daily volume that you can bag this baby at $8.50 or very close to your offer price.
Else, Astellas would of raised their offer if the deal looked weak. Simple as that to me..
Astellas is 100% "in the driver seat" then looks like to me. Very common on a strong round-1 to offer the same price, no increase needed.
This is proceeding 100% "normal" from the several deals like this I've seen in the past.
Remember, OCATA is cash poor- the more time that goes by, the worse financial shape OCATA gets in and the less valuable they will become as their cash line of their balance sheet will be burning down to ZERO while their trials appear to be going nowhere fast.
OCATA desperately needs Astellas to survive and have a chance at moving ahead in any meaningful way on their phase II clinical trials and they know it IMO.
It's gonna be another qtr GONE in a few weeks, another qtr of SMOKED CASH GONE off the OCATA balance sheet- and what do they have to show for it at this point?
The FEDS just raised interest rates for the first time since 2009. The capital markets just got "tighter" for OCATA to survive. The global economies all appear to be teetering on the brink of major recessions. If OCATA can't tap the capital markets (the $28 million secondary was a bust, a failure of the $62 million secondary, ending up with price crushing warrants (sweeteners/kickers) to the hedge boys that drove the stock to barely $4 bucks and change)- then OCATA is going to be in a major cash squeeze and financial fight for their life, like they've been since essentially their entire existence, birthed on to the OTC penny markets from the ashes of the KACHINA doll company of Utah.
OCATA does not have time on their side. Astellas has all the cash and cash flow and time in the world. Astellas is a growing and thriving business of Blue Chip quality while OCATA is a micro-cap on cash survival life support, with phase II trials sitting in the parking place going nowhere fast, burning up cash at a furious rate.
That's the reality as I see it. OCATA needs a life line and Astellas can wait as long as needed w/o suffering a thing.
Posts contain only my amateur opinions, personal views and thoughts. I discuss stocks as a hobby only. Always do one's own due diligence before investing.
