Fabius, I think That is where we need to focus our attention. As doog pointed out in the post immediately prior, we all know what the history and how we got to this point. Between his management AND the games being played we are where we are. The question is where can we possibly go ?
Honestly, I do not see delisting as an issue at this point. The recent reclassification of the warrants as now shares exercise-able at the strike prices allowed Odidi to carry those shares are shareholder equity and which is why they are now counted in the float. Equity that he can just not throw away paying the high salaries. at least not until he does something to get share price to the strike prices.
So that coupled with an RS allows us to maintain compliance. so taking that off the table where do we sit or what is in the future?
It still does not ease the cash flow issue. So I see 3 options;
option 1, he inks a deal even without up front payment. signing a deal for both Regabatin and Rexista could pop the share price to the $3 range assuming he tells us the value is worth say 50 million each in future milestone payments. A 10 to 1 RS would then put us at $30 a shares with 5 million outstanding shares. He could then sell only 500k shares at get 15 million dollars! which would only amount to 10% of the company.
Option 2, he dilutes either before or even after the RS. with no news we sit at 35 cents. a RS of 10 to 1 gets us only to $3.50. He would need to then sell, 1.5 million shares or 25% of the company just to get 5 million dollars and keep the doors open another quarter.
If he takes option 2, he will lose control of the company and be forced out. Is that really a bad thing???? I could see us recovering from that just taking longer.
option 3 of course would be ink a deal with upfront monies. that would stave off further dilution for a time. are there any out there however? Possibly maybe with good HAP studies for Rexista however we dont expect those studies to be complete until September or October. so that wont help the immediate need for cash which is why I feel it will be option 1 or 2.
what do others think? I feel we do have to look for what the worse case is at this point and plan for it and right now Options 1 or 2 are what I perceive as our worst cases.
