Spunky, You hit the nail on its head, CVR's its just the gimmick to convince SH to approve ANI merger, that is what I keep saying all along, Prof. doesn't seem to get it.
"The new combined Co then may, may not invest on new efficacy trials. [ unless of course use P&G effiacy results under 505 a ?] spend 30-36 mil to complete the two trials and then release final safety results ? On the surface i am sure you can understand how this just does not seam right. As a concerned shareholder, i would very much appreciate some explanation as to how this decision is in the best interest of Biosantes shareholders.
You are quite correct that the merged company could decide not to conduct the required efficacy trials and may choose to license out or sell LibiGel to another company more able to fund the trials. That is where the CVRs come in."
"For clarity, this means that we are CAPPED at 40 million for any sale of Libigel properties. To achieve that, we have to get about 60 million outright. THEN, we get 47% of anything beyond that. Only IF ANI develops Libigel. So if they sell it, we get 66% of whatever the sale price is- but only up to 40 million, then NOTHING. Or if someone buys the Libigel package for 200 million. Guess how much we get? Do the math"
"If we are sitting on a successful safety study, why not release the news.....PPS should see very positive results. Then do a offering to raise 40 mil for two new efficacy trials" ? Or partner with large Pharm.
Happily the safety data to date suggest the LibiGel is safe for women in the doses used in the safety study. However our board determined that the merger with ANI was a lower risk alternative for our stockholders to realize value in the near-term than funding new LibiGel efficacy trials at this time especially given the depressed value of our stock due to the announcement of the efficacy data back in December 2011.
Translation: We thought giving away all our cash and cutting share holders out of THAT value by 50% plus reverse splitting them, then capping their possible Libigel value in hopes of a quick sale was the best choice. Obviously, BPAX does not believe that they could have brought Libigel to market with approval before dying on the vine.
AI
