Altor case, remember the article said two of the board of directors were bribed? Maybe they held majority shares and vote it through.
Not saying K was indeed doing something similar. But, hypothetically speaking if that was the case, there could be number of things that might seem to relate.
First of all, how do you justify a cheap buyout? Take out SCLC results so it never see the light of day. Aldox value remains what it is with STS indication. Competitions don't have that knowledge either and they would be less likely to bid for Cytrx.
Keeping the SP low so market cap doesn't go too high because it would obviously cost more to buy the company if we were trading 5$ for example. If our market cap was 700 million, you can't really justify a 400 million buyout.
Lowering SP might seem like it started with bad release of trial results last July, then offering immediately after that sets the SP. Another round in year end amended 18 million warrants from 75 cents to 50 cents even though STS results were evaluated as positive. May offering earlier this year when we were touching 1$ on FDA path way. RS proposal with options that favors company management and potentially gain more control of the company stock. All of that might seems like a way to keep the market cap down and gain control of the company. That's the key is to gain more control. You can't vote a bad deal through if you don't have enough voting power like the RS vote. They had about 50% voted yes on that one which is concerning and it indicated K is not alone on this one.
Maybe SK was working with Sabby and Black Rock getting them cheap shares and voting power, and if we do sell for 4 bucks, they would have made a lot of money. But, the RS vote failed, and it doesn't looks like K have control of the company so the deal isn't likely to be done. Maybe some of the Tutes bailed out as the result, but Sabby is still around.
Remember ABBA said something like he doesn't support the petition to remove K? He said something like not liking the shareholders messing with the buyout deal. It could very well be the case is that there was a cheap buyout but failed. Now, this is all speculation of course, I don't claim any truth to what I said above.
Who knows, maybe Soon Shiong backed out of the deal and did a partnership instead. Maybe K isn't giving up and we once again facing delisting treat and the company simply say nothing. No forward guidance, or plans on cash management. With so much uncertainty, is this yet another attempt to try and keep a low share price?
Personally, it's not hard to build some confidence into the company. It just seems to me management wasn't trying to. Instead they actually want the opposite. I mean, you don't need a business degree to know you got to share your plans with the public to build confidence.
Simplest thing like putting in the earnings report that they expect spending to reduce, and cash enough to last until NDA approval next year with the Hercules debt paid off would lift a lot of doubt.
So maybe that's why some are still holding on so call bag holders. Maybe K is waiting for future opportunity to gain more control and do the deal with Soon Shiong. Maybe the major shareholders were fighting back and will not allow it to go through were they would lose big. Again pure speculation only.
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