buzz, I have a question and a couple comments.
Q: I haven't understood why a brokerage firm like Fidelity would stop enabling its customers from buying BIOAQ stock. What might be the explanation for this? This is the first time I've seen with with respect to a viable equity.
Comment 1: I disagree that most folks expect a buyout. In the absence of information -- and we haven't got any new information in the last month or so, other than verification that "multiple offers" have been made -- the change of a "buyout" appears to have the same odds as a "strategic partnership." This is true since the final outcome will not be the result of pure market forces. A Canadian judge will make the final ruling. The BoD has European representation; the Canadian gov't has subsidized product development; and, there are current licensing agreements with third parties, notably, a South Korean company. In short, I think a "strategic partnership" is equiprobable with an all-out buyout.
Comment2: Most folks do believe that the plight of BIOA has been due to "bad management." But, information provided my mrtacpans and others seems to or show that the company simply ran into bad luck before it could reach full production. For instance, in 2015 the price of corn rose way beyond its 40-year average while the price of oil dropped to $35 a barrel. These were probably unexpected market events. Also, one of its primary creditors, namely, Comerica, HQ'd in Texas, refused to accept supplementary financing, forcing management to see CCAA protection (which is not the same as bankruptcy). As it happens, I think that several current members of the present Board were also members of the Board before BIOA sought this protection. What I'm saying is: management got caught between a rock and a hard place, something not fully the result of their own doing.
I hope you agree with these comments.
