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Re: TennisStar post# 7146

Friday, 10/07/2016 12:51:52 PM

Friday, October 07, 2016 12:51:52 PM

Post# of 41677
As far as touting a buyout, i havent done so on here today. So unless you are reading my posts on ST, which you told me you were not on, then what are you talking about.

I did however post the change of control and I am not sure what to make of it as Ty is a controlling member.

Here is my supporting evidence for a BO/merger. I of course can be wrong.

1. Board of Directors asked for 800,000 shares to be given out to management at some future date as typical performance incentives. That is a lot of shares. Also of note, these shares upon being awarded, are automatically exercised in the event of a buyout at no cost to the holder. This is something to keep an eye out for in regards to Ty. How many shares did he get?

2. CFO laid off and Sonny is assuming duties. As CFO is a certifying member of all financial documents, wouldn’t this be an issue for the Sarbanes-Oxley Act long-term?

3. IR is now a lawyer former Chief Legal Officer for Amedica, that has experience in mergers and acquisitions; both former companies were acquired.

4.38% (21) employees laid off. With the amount of cash in the coffers, warrants outstanding ($12.9 million total), their ability to do offerings, I do not see how CsC denial could cause this kind of cutback. With the recent revelation of additional distributors and updates to product line, the loss of CsC would not slow current sales trajectory.

5.Focus of cleaning the balance sheet: reduction of debt, removal of toxic debt, reduced cash burn & most importantly more cash than debt (important because Hercules loan has a M&A clause so this has to be paid off). Paying off this loan could be why they layoffs were so extensive. Allows for them to live on cash for a short period.

6. Sudden focus on Sales and further reduction of cash burn.

7. Over the course of the last year Sonny have completely overhauled every product. Valeo II C, additional sizes and variations of Valeo II L, pedicle screw, new SiNi formulation, Scorpion inserter (used with Valeo II LL & TL), & updated tool sets.

8. The wording in the 8k filed yesterday: “strengthen the Company’s value proposition”. I’ve never noticed that wording before if any of the previous filings.

9. Media Blackout: 5 months no real news updates, no OEMS, just the essential filings.

10.First position to go in a buyout is the CFO and the 2nd is IR. This brings us full circle back to 2.
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