Folks, the following my take, based on my opinion and way I see and break-down the proposed “merger swindle”.
When one public company acquires another, stockholders of company being acquired are compensated for their shares. This can be in form of cash or shares in company doing the acquiring, or a combination of cash and shares. Either way, shares/stock of company being acquired CEASE TO EXIST.
Using above as underlying mechanics, in KERX/AKBA proposed “merger” swindle, KERX would be company being acquired, hence, KERX shareholders would be the ones being “compensated” not AKBA shareholders. As such, KERX shares will effectively be replaced in your brokerage account(s) with a certain number of MERGED AKBA shares. As you know, the ratio of KERX to AKBA shares would NOT be one to one. The proposed conversion ratio from the dungeons of hell equates to .3743 KERX shares to 1.000 AKBA shares. What this means is that 62.57% of your KERX holdings will be subtracted, taken away, and remaining 37.43% will be converted into MERGED AKBA shares. For example, if you own 5000 shares of KERX today, upon execution of proposed “merger swindle”, your 5000 shares of KERX will become 1871.5 shares of MERGED AKBA. At this point, forget KERX shares, they CEASE TO EXIST, you now own MERGED AKBA shares which would be worth whatever price per share MERGED AKBA is trading at as per dictated by MR. Market and accompanying manipulators. (this is key to keep in mind to understand that what Robert H is peddling is snakes oil).
AKBA shares today are trading at around $10/share with AKBA at 57M O/S or market cap of $570 million. Upon execution of proposed “merger swindle”, MERGED AKBA O/S would increase from 57M to approx. 115M shares, in other words, AKBA is acquiring/“merging” KERX to form new MERGED AKBA by simply issuing 58M AKBA shares. No cash, no REAL price/based transaction. The pro forma valuation Robert H is peddling is “cooked-up” STEMMING FROM a .3743 conversion ratio which effectively “hijacks” 62.57% of your KERX shares which NO VALID no relationship whatsoever between Auryxia with FDA approvals, EU, approvals, and well into commercialization vs Vadadustat still in clinicals years away from commercialization — yet, it is KERX shareholders taking a big hit ( pro forma means assumed, forecasted, informal calculations, not a certainty).
So what would be the price per share at which MERGED AKBA shares would be trading upon execution of “merger swindle”? Would it be dictated by the “cooked-up” pro forma valuation which Robert H is peddling or by whatever price per share is dictated by Mr. Market and accompanying manipulators? Me thinks the latter.
So, will MERGED AKBA shares be trading at say, the same $10/share that AKBA is trading today which, btw, at 115M O/S would equate to MERGED AKBA at &1.15 billion market cap (with KERX having been merged INTO AKBA) not the $570 million AKBA market cap of today. Will Mr. Market and accompanying manipulators factor-in the value of KERX (the company and its technology) thus appreciating MERGED AKBA’s price/share? —Or will AKBA’s and KERX’s price/share appreciate prior to proposed “merger swindle” only for MERGED AKBA to take a hit post “merger swindle” reflecting the increased O/S from 57M to approx.115M shares? You see folks, normally, the acquiring company, in this case AKBA, takes short term given either giving-up lots of cash or diluting or a combination of both.
Today, if you own 5000 shares of KERX and KERX is trading at $5/share (haha, here’s swindle variable #1, KERX should be trading at no less than $10/shares but, guess what, even with IDA approval, or Innovator Award, or breaking late-breaking abstracts, or God himself buying KERX, KERX’s pps has been held “hostage” for over 8 months since IDA approval, now you know why, IMO) — if you own 5000 shares of KERX and KERX is trading at $5/share, you’d have $25,000. But, with proposed “merger swindle”, you would own 1871.5 of MERGED AKBA shares which , if trading at $10/share, you’d have $18,715 not $25,000. MERGED AKBA would need to be trading at $13.36 to equate the same $25,000.
Robert H is posting about MERGED AKBA trading at pro forma valuation of KERX + AKBA market cap — bunch of CROC. The MERGED AKBA would not be trading at KERX + AKBA pro forma market caps as a mathematical certainty, but rather, as dictated by Mr. Market and accompanying manipulators.
But’s let’s suppose that Mr. Market and accompanying manipulators, either prior to or post “merger swindle” appreciate AKBA (prior to) or MERGED AKBA (post) to $18/share in recognition of KERX/Auryxia’s worth. Well guess what, who’s to say that $18/share is not fertile ground for the “mafiosos” to once again crank-up the short operation machine aimed at once again generating short profits, while bamboozle shareholders again, rinse and repeat, while shaking shares and getting ownership of the newly issued 58M shares employed to “gobble-up” KERX (they already control 75%+ of the current AKBA 57M O/S)? Funny, with proposed “merger” swindle and merged AKBA taken to $18/share scenario — it would be exactly how it “worked out” for KERX shorted from $18 AND RMTI shorted from $18. The aim would be to take control of both companies which have been rolled-up into one, while KERX shareholders get “swindled” out of 62.57% of holdings.
Look folks, Robert H is attempting tto peddle a load of CROC to confuse you with pro forma valuation and this is my favorite from one of his posts — “the conversion ratio is to get the number of shares equilibrated to the 51/49 split” (hahahaha).
The 51/49 pro forma split is meant to make it look like KERX has majority ownership of MERGED AKBA when , in practice, effectively, with “merger swindle”, KERX CEASES TO EXIST — the pro forma valuation and split, in practice, effectively, means squat for KERX shareholders of today. KERX shareholders would not own 51% of MERGED AKBA or any other mumbo jumbo — that’s pro forma. In reality, in practice, KERX shareholders would simply own MERGED AKBA shares which will be 62.57% LESS shares of KERX shares owned today, and which value would be effectively dictated by Mr. Market and accompanying manipulators.
It would be perfectly valid consideration that a probability factor as high as 99.9% can be considered to describe the .3743 conversion ratio as a machination employed aimed at one thing and one thing only, to erase 62.57% of KERX shareholder holdings, a swindle of all swindles, with intent to “hijack” Keryx Pharmaceuticals, Inc. and its blockbuster potential, Innovative Award winning, multi-billion addressable market, science technology Ferric Citrate — by a group of bonafide “mafiosos” who, while amassing a fortune in short profits for YEARS and subjecting unsuspecting KERX shareholders to YEARS of financial and psychological suffering, and after issuing some 65 million KERX shares with proceeds of some $550 million spent to advance company, ALL groundwork and structure, and blockbuster Auryxia to turn-key ready status, now want to “hijack” 62.57.% of shareholder holdings, “hijack” the company, “hijack the science”, roll it into the AKBA enchilada via a so called “merger” from the dungeons of hell, AKBA a company with a drug candidate which is years away from selling $1 IF approved, with $400 million in cash which will be burned at the stake of end stage clinicals, with delayed end clinical results falling back 1-2 years behind Fibrogen’s Roxadustat.
Any numbers employed in an attempt to mixture-up a mathematical concoction of pro forma valuations and pro-forma equity between the 2 companies which stem from an underlying conversion ratio of .3743, is nothing but “witch doctor” criminal practice which authors should face any and all chambers of the justice system and be punished accordingly for being the despicable “mafiosos” they truly are, dressed-up in Valentino threads trying to camouflage their deranged greed and scumbag cruelty at the expense of the very people which put their trust in them.
Screw that, a million times screw that — let them put the official paperwork on the table if they choose to insist on taking this to the ultimate — and let’s get it on!
Finally, here’s another favorite from one of Robert H’s posts — “Contacting a lawyer because you think that is a huge mistake.” Ladies and gentleman, Robert H is a piece of work, and one that you can trust as much as you can trust a former Gucci authentic women’s handbags salesman on Canal Street in NYC.
ALL above, in my opinion, as always..
