BioAmber Inc fka BIOAQ

[BearcatJohnnie]

Option #1 Stalking horse bids. The CCAA regime is flexible enough to allow for ‘stalking horse bids’. This approach is well-known in the US, but is relatively new in Canada. In this process, the debtor company enters into an agreement with a ‘stalking horse’ bidder for the sale of particular assets or the entire distressed business. An auction process is then undertaken to obtain the best offer possible. The stalking horse bidder provides a price that underpins the auction process. The stalking horse bidder enters the process knowing it may be outbid and thus negotiates compensation for its transaction costs, usually in the form of a break fee that it will receive if it loses. The stalking horse bidder resembles the ‘white knight’ in a takeover situation.

Option#2: Share sales under the CCAA. An alternative to the sale of the debtor’s assets is a plan of arrangement involving the issuance of new shares of the company to the investor, with outstanding shares being diluted or extinguished. The cash, debt or equity securities contributed by the investor can then be distributed to the debtor company’s creditors pursuant to the plan of arrangement. Approval from the debtor company’s shareholders is not required, merely approval from the creditors – unless the court orders otherwise.

https://www.financierworldwide.com/mergers-acquisitions-in-a-more-uncertain-world-using-the-companies-creditors-arrangement-act/#.WyzxChgpCaN

Based on what we have seen and what the company has said in court and everything going on with the bidders, it looks like we will have a buyout of assets (option 1) this makes me think they are not pursuing option 2 and I don’t see any new stock issued because they won’t have to offer new stock since there assets are so valuable they can use them to pay their debts and much more..

Do your own DD and see what’s going on here.