Equity- the only way I'm aware of that a public company can "buy back" its own shares is on the free and open market.
I'm not aware of any circumstance I've ever read of (and buy backs have been BIG, HUGE these past few yrs of the bull market as companies, the profitable ones have been swimming in cash. Some of the "big boys", such as an Apple for example, they can even borrow using bonds and get the money so cheap, like almost zero interest rate debt- that they may use debt to buy back shares as it pays off in the long run if their share price appreciates and they have so much piles of positive cash flow that servicing a little debt to them is noise level. They're so swimming in cash- they need to find a way to put it to work)
But for a company in BHRT's situation- I'm not aware of any other way for them to buy-back shares other than via using cash and "at the market" price. Those 45% or 47% share discounts are given to the "toxic" lenders via the built in provisions, contractual terms of the "convertible note" deal. In other words- the price becomes "discounted" because it's BHRT "issuing" those lenders the shares- they're not being "bought" per say on any market. BHRT, the company, is the only one who can "issue" their own shares. The BOD "approves" an authorized pool of available shares- and think of those like sitting in a holding or bank account.
Then, BHRT makes a contractual "deal" for cash with a lender and promises in turn to "give them" a certain number of shares in return for cash. That's how the 45% discounted price comes into play- BHRT really issues them more shares than they should get for the amount of cash owed, which is the same effect as giving them a "discount".
That's the only way I'm aware of that a discount to shares can occur- it'd have to be on the "front end" when the shares get granted. I don't think any reverse scenario exists for buying back at a discount- I believe that's always "at market" (perhaps maybe some merger or acquisition scenario might play out in certain circumstances where someone gets more shares than market price- not sure, but that would be another very special, unique case).
I think buying is "at market" and through some professional brokerage house- and done more or less the same way everyone else buys shares. They, BHRT for example, would give the brokerage say $5 million and tell them to start buying/accumulating shares anytime the price hits say .009 cents or lower and the firm buys the shares back for the company- something like that.
I agree- I think BHRT's limited cash should all be getting plowed back into operations. Not spent on a share buy-back of all things. If they, BHRT could get a clinical trial going, a real key one or other things like real R&D and "big stuff" happening- shoot, the share price will take care of itself, as is always the case.
It's bass-ackwards IMO. CASH RICH companies "buy back" shares using excess profits and cash flows. CASH POOR companies who borrow and dilute and so forth are the last ones in my mind to even think about or consider buying back shares. BHRT needs every dime they got coming in right now to stay alive and keep the lights on and avoid BK IMO- based on the numbers and reality of that last 10-K filing and their auditor's "going concern" IMO says pretty much the same thing.
The oldest saying in biz, "CASH IS KING" and BHRT is in the hurt locker for cash right now and has been for a prolonged period. Cash if the life blood of a business- and BHRT is lacking cash, which means they're on the rocks IMO. Last thing they need to be doing as you said, and I agree, would be to spend their precious low cash on buying their own shares back?
Would make no sense to me.
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