Yahoo Post: the urge to provide additional context on QOL's potential role in the SGYP stalking horse bid process. QOL see's financial value by purchasing SGYP shares as a hedge against their upcoming bid. Based on today's volume (and likely tomorrow's too), it will confirm that QOL has moved forward with their share purchase, and have made a decision to enter a bid that will exceed the current, and be greater than today's current share price. One can assume, QOL will have ~50M shares at an avg ~ $0.40/share ($20M investment). One could feel confident that their best bid will exceed current debt + their avg.price/sh. In doing so, they have created a floor for those who are already invested. It's best that those who currently own shares hold until 2/23, as there will only be upside from today's closing price. Purchasing at a higher level than this floor price does create some risk given the final bid is unknown. I have seen these play out, and most companies typically delay their submission until the final day. If QOL wins the bid, they now pay themselves back for the 50M shares, at the higher price they created. If a higher bid comes in, they walk away with a financial gain. So it's a legal and common win-win strategy that can exist in a stalking horse bid scenarios. As an example, let's say QOL's best bid is $600M (~$1,50/share - after covering current debt), they walk away with the patents,and discount their bid by $75M via the purchase of shares. These shares allow QOL to leverage additional capital to provide a best bid. In addition, they can sell-off some of the assets (ie Dolcanatide), which further allows them to discount their best price. Let's say they sell-off that DOLC for $100M (or higher, based on upcoming results). Their final net purchase of Plec will be $425M. Recall, up until Mgmt made their announcement in October, the MC on SGYP assets were ~ $425M. If QOL isnt the high bidder, they walk away with the value of their shares, which generates $75M in 20 days, minus their initial $20M investment . Again, a creative and strategic way to leverage their position, provide a best bid price, while generating no financial risk to the organization. I have seen a few interesting posts, and respect everyone's opinion. Just wanted to share some insight from my years of experience working for a small NYC hedge fund. We will all see how this plays out in the next month. Good luck to all the bulls & bears out there. With much respect - JM
