Question Docprep:
If BK wasn't an option on the table, why would she mention it in her press release?
To scare shareholders into voting a certain way? Probably. But, at the end of the day she might see BK as a better long term alternative.
I spoke to Dr. Simpson back in June. I asked her point blank what would happen if the RS failed, and she unequivocally answered that the company would run out of cash and that all options would be on the table.
She also made it a point to emphasize that with medical devices in particular, offers tend to come in after approval. And that while her goal was to hopefully field an offer worth considering, she didn't want to negotiate any deals without the leverage to do so.
Bankruptcy gives her leverage. It buys time and allows access to money (DIP) that would ultimately allow the FDA to make a decision. That's all she wants. To get the FDA to approve Chemosat first, and then go looking for partners/buyers. The no vote on the RS would mean that she has to sell right now -- and nobody is going to offer anything substantial knowing that her only alternative is BK...
I put the odds of BK at around 10-15%. So it's small. But I would never feel comfortable saying that it isn't an option, because it is, no matter how unlikely.
Market Data 
Markets 
AI
