There is no shareholder value for anyone going through that meat grinder because the future outlook hasn't been painted with a better brush. The 500:1 RS has a 75% Risk of Failure... published. The RS at this juncture is also raising eyebrows to credibility. Why RS now? Even if profitable why so soon instead of having the troops get their just rewards. It's been a long troop through the desert and the Oasis isn't looking so grand today.
Pretty difficult to ignore the obvious. I haven't heard a plan yet from CBAI of how it gets lumped into the 25% that succeed after a 500:1 RS and after Diluting shares Again, Again and Again. See "A watered down drink of lemonade is easily detected by the first sip..." and these CBAI shares are a fraction of what they once were due to being watered down by Dilution. Now we are suppose to believe further Dilution is grand. Nice try! Nope... no way I am looking to make money not lose money or donate money to CBAI!
I don't think there is any comparison other than the obvious; the CEO is making this (today) with lack of clarity appear to be a wash & rinse cycle. Remove current shareholder interest in said company either by voluntary sale or said RS proposal and begin anew. This plan at this moment without full disclosure says the CEO may have failed. He hasn't done his fiduciary duty to increase shareholder value in the stock. My trade account confirms. The new plan with AS increase after RS is a death spiral for current shareholder value. We don't know the names of China partners nor are we privy to the Tissue Bank contract language and with what entity. Is the plan annuity or discarded? CEO says discards lucrative but has < 1% discards... what is the plan to making it to his 06' prediction of this being a $1 Billion dollar stem sector and when? No clear today. If we are close why RS the shareholder who financed the operation?
That bridge/connection looks more troubling than promising for me (today) based on the inability of HQ to present the picture in its clearest form. Waiting to see if that changes. Now more than ever HQ needs to tell shareholders why the 75% probability of failure in this proposal is worth the Risk. It gets an F grade (today) in that PR effort.