Good news for Biophan shareholders:
When it comes to deals in the biopharmaceutical/medical device space, there are only three things that really matter for a potential partner looking to in-license a product or technology.
These are:
1) Is the technology likely to work, and if so is there a profitable market for it?
2) How much will I have to pay, and how can I “de-risk” it by minimising up-front payments, and weighing more to down-stream payments?
3) Is my partner stable, and can I protect my investment if they go to the wall, or are not able to afford to develop the technology?
One of the last things I want as a potential partner is shares in the company licensing the product to me. This is because they are an inconvenience from an accounting point of view – they have to be valued and accounted for on the balance sheet each quarter for a public company – and besides, I’m not supposed to be a portfolio manager.
Therefore there is absolutely no necessity for Biophan to issue extra shares in order to make it easier to out-license the Myotech CSS technology. In fact, by diluting the number of shares outstanding and weakening the strength of the company, they make Biophan less attractive as a partner –see 3) above.
The only currency that matters in the Bio Business Development world is the mighty greenback. Biophan wants them, and any potential partner knows they have to pay them for access to any worthwhile product/technology. End of story.
Feel free, therefore, to abstain in the proxy vote where Biophan are spending $50,000 of your money asking turkeys to vote for Thanksgiving. If anything refusing to issue more shares will enhance the chances of finding a partner for Myotech CSS.
What would enhance the chances even further, and increase the value of the deal, is if Biophan were to conduct, or start to conduct, studies in humans with Myotech CSS. This would enhance the value of the asset, and (if successful, of course) help with the “de-risking” that any partner seeks.
No, to grant Biophan’s “management” the ability to issue another 550 million common shares is like giving an alcoholic a bottomless bottle of whiskey.
What Biophan needs is some tough love.
Just say no to MegaDilution and to rewards for failure, and demand performance against reasonable targets. It’s in their own interests, and it’s certainly in the interests of you as shareholders.
As for those who seek to enable the dependency and addiction of Biophan’s management to MegaDilution and toxic finance, as with those who facilitate the destructive behavior of an alcoholic, you have to question their motives.
I wonder what’s in it for them?
Why would they seek to harm the shareholders by encouraging destructive behaviour like MegaDilution when it’s entirely unnecessary?
