There never has been a contract of supply because they don't have production, nor can they supply at a price the market needs and no purchasing manager who wants to keep his job will place an order with any company who cannot state in an SEC filing that they can't confirm their ability to be there in 12 months time. MBLX is like Brazil v Germany they are near the final minute at 7 to 1 against. It is only a matter of the final whistle blowing
It would have been better if they were done in January and reduced the pressure and stress on the structure. Even if funding is found, it doesn't make sense to continue with the same staffing levels, its just not sustainable. You move forward with ramped up staffing after contracts are with partners, customers, creditors, etc...
I have expressed the same sentiments over the last 7 months. With no cash left those layoffs are inevitable with payroll unlikely to be met at the end of this month if spending has not been adjusted in the ladt quarter. You also must assume some of the staff have already left of their own accord at this stage.
If a company is having fiscal issues and a new CEO is brought on board, the CEO needs to make the hard decisions in regards to staffing and expenses until things are brought back to sustainable levels. He needed to make those cuts immediately. Its not just about funding, its about EXPENSES. Seems as if he is being completely controlled by the board who wants to keep the status quo. If these cuts were made right away it would have brought some investor confidence seeing we are on the right track, and you would have seen the stock rise back up to the 1.25-1.40 range level. Instead look where we are today. I didn't hear these things in the last call from the CEO, and in addition to the lack of communication and just dead silence makes investors very worried. I certainly hope the company can bring these products to market but I have seen company turn arounds first hand and I don't see any of the right signs that this headed in the right direction.
Laurence Alexander reduced his stock price target for MBLX from $32 down to $14 back on Mar 17, 2008. Some questioned why the stock price target would be lowered from $32. Hard to believe some of those that were long back then are still long today with "strong buy" with the price at 77 cents. Over 6 years later, and around $400 million of cash burned. Each day that passes without financing announced increases the odds that MBLX will soon be sold to highest bidder. Is their technology worth $5M? $10M? $20M? Could it be worth as much as $50M?
Sentiment: Strong Sell
You could exchange the word stupid for optimistic. After all he did inherit $20m in the bank. What he likely found was a train with no brakes. All they did was exchange the driver at full speed. He did not change anything so investors simply lost faith after the honeymoon was over. His mistake perhaps naively, was that his first statement outside of the standard powerpoint presentation format was a shock claim to need $50-60m to get them to the end of 2015 without profits, or even breakeven. The nail in the coffin was a statement that he woukd be in a position of being able to confirm funds by end of June. Jos847 is only expressing what most investors (potential or long) are thinking.
Damn Shaulson, what the hell are you doing?
35,000,000 x .04 = another $1,400,000 loss today!!!!!!
How about do us a favor and take a day off from work tomorrow.
Some math. There are 4.5m shares short as of last count. Lending of these shares usually comes from institutions (for a fee). Insiders with 22% won't sell as this is notifiable and would trigger capitulation.
There are 28% of the outstanding shares held by institutional and mutual funds. With 35m shares and 4.5m shares short this means that 9.8m shares are held by funds with 4.5m lent for shorting the shares. That means that as much as 46% of institutional and mutual funds shares are locked into short positions. It is possible that shorting has been done by the institutional group of funds in a short trade to cover their long positions in another fund. A group of funds would be those with long positions and those with short positions. So don't expect any mutual funds to exit as short positions will simply roll over when required to cover as many group of funds may in fact be well in profit if they shorted not long after the last funding round.
Looks pretty dire:
Metabolix, Inc. (the "Company"), an advanced biomaterials company focused on sustainable solutions for the plastics and chemicals industries, has updated its previously announced plan to complete the first phase of its financing by June 30, 2014. Although the June 30 target date has passed, the Company's primary focus remains on completing financing in accordance with the Company's previously described plan to raise $50 to $60 million over the next 12 months and executing its biopolymers business. However, there can be no assurance that financing efforts will be successful and the Company may still delay, scale back or otherwise modify its business and its manufacturing plans, its sales and marketing efforts, research and development activities and other operations, and/or pursue strategic alternatives.
That said- it looks like Gadea is the front runner to acquire the facility.
I believe the current facility exceeds Gadea's immediate production needs.
Given the prior business plan that Gadea, MBLX and Wacker had proposed- I am curious if Gadea would restart discussion with MBLX about production options.
I believe the existing plant is already fitted with MBLX production assets.
I'm neither a scientist nor a math major- but I have to believe that - on balance the "former" Antibioticos production facility option would be the most cost effective- considering ramp up time/up- front capital requirement/and availability of skilled, motivated workforce.
I realize that hope is not a strategy...and that my speculation/optimism is just that..speculation in the absence of facts.
Very interested to see how this plays out.
Nobody is dumbfounded by the absence of a blood bath except for Dagiw who ,as he claims is not short!!
Good points. I think you points primarily apply if you see this stock as an investment. I don't.
PCI, like you I am dumbfounded as to how easy this has been to profit on shorting over the last year as a one-way bet. Even if ( and that is a seriously big if ) they manage to raise funds you can be sure it will be a major dilution to existing shareholders. At the current market cap it is also suggested that existing controlling interest will pass to external investors. So if anyone is in anyway interested they will simply wait to buy what they want in a fire-sale or loan on security of the IP leaving all existing shareholders out in the cold.