In my opinion the initial approach of AVNA management to solving the problem was not a good choice for shareholders of AVNA. Now, perhaps they will take a better approach. It looked to me like they were trying to sneak one through and essentially let Owlstone walk away with all the eggs in the basket. That was not smart because I'm sure that's the way the market reacted as well. If the market had not reacted that way then I suspect there would eventually have been a law firm step in and sue to recover punitively on behalf of those shareholders who were not insiders in this process. I'm speculating, but I've seen it before and, thankfully so has the SEC, and they are far more motived and determined to prevent that kind of BS.
I fully understand Owlstone not wanting to go public. However, as long as AVNA owns substantial equity in Owlstone they have a power-broker role in the future of that company. Finding one or more minority owners in Owlstone that would like to be better or sooner able to sell their equity for optimum profits gives AVNA the opportunity to leverage their position and bring about a reasonable solution.
Owlstone needs to take a creative approach to helping AVNA recover maximum value from a sale or surrender transaction of the Owlstone equity. That kind of thinking will bring about a more positive solution and it is clearly in the best interest of both parties. If they don't then I'm sure eventually AVNA will find a powerful partner that would love to acquire control of Owlstone and is willing to buy control by leveraging a few minority owners into selling a package of controlling interest.
There is no hurry. As Owlstone grows the value AVNA owns grows. As that value grows the pressure for some form of distribution, creative financing or buy-outs at Owlstone will emerge. Then they will want to solve this problem.
Meanwhile, IMO, AVNA has to find another Owlstone opportunity and leverage another position in the process. They have public shares, the ability to do mergers, acquisitions or even leverage some of the equity of Owlstone in order to help them accomplish additional growth. I see no reason for AVNA to panic and/or try to re-establish their business by going backwards in value or borrowing substantially. It is better to just work at finding another good and strong partnering opportunity.
I'll hold while this works itself out and I've bought a whole lot more shares in order to average down to a much better position while the pps was staggering under the weight of the very poor handling of this initial AVNA strategy. The BOD at AVNA better start thinking like public shareholders if they want to really create some substantial value (not just for themselves and a few insiders).
GLTA
Companies now muzzle information:. We need the IMMEDIATE RIGHTS to # of authorized, issued, insider held, etc. Demand current PUBLIC information! Write to both Congress and SEC: DEMAND this NOW!
