i think the mom-mo will shift to the Long Side now. We have ruled out BK - I never took that seriously. As was previously cited - only issue is now price. Any price less than $150 Million (share price about $ 4) is absurd.
Shorts can make two arguments - that Omontys has Zero value- that it is so seriously flawed that it does not work. This argument is not borne out by the stats of 25,000 patients.
Next Shorts can say that AFFY management will give the company away -- for less than $2 a share.
We have already seen a law firm file papers accusing the BOD of failing to uphold its fiduciary duty. Anyone who gives AFFY away will face prosecution or civili litigation.
DYLN let me know when Affymax has ruled out bankruptcy. According to its most recent 10K, this is its official position, which about sums it up nicely:
As a result of the February 23, 2013 nationwide voluntary recall of OMONTYS and the suspension of all marketing activities, there is significant uncertainty as to whether we will have sufficient existing cash, cash equivalents and investments to fund our operations for the next 12 months. If we were to reduce cash outflows, there is no assurance that we will be able to reduce our operating expenses enough to meet our existing obligations. If we are not able to reintroduce the product or obtain additional funding in the near future, our cash resources will rapidly be depleted and we will be required to materially reduce or suspend operations, which would likely have a material adverse effect on our business, stock price and our relationships with third parties with whom we have business relationships, at least until additional funding is obtained. If we do not have sufficient funds to continue operations, we could be required to liquidate our assets, including relinquish some or all of our existing rights to OMONTYS, seek bankruptcy protection or other alternatives that would likely result in receiving less than the value at which those assets are carried on our financial statements, and it is likely that investors will lose all or some of their investment in us.
i) we paid all amounts due and owing so as to discharge our obligations thereunder, Very good company and very responsible one. Companies which plan on filing BK will not pay off debts! BK is designed to dispose of debts and disappear.
(ii) we waived any rights to seek additional credit extensions or unfunded commitments under the Loan Agreement, Simply means AFFY does not need any more loan. Plenty of cash to last another 2 years or close to $100M in the bank.
Today filing looks good to me unless I miss something. Anyone?
They don't have $100MM. They may have $15-25MM when all is said and done.
That should be plenty to get us through the next few months. I would issue a shelf registration soon for another $25MM and make a statement that BK is not currently on the table.
The issuance of more stock with news of no bk would counter each other. The only way this goes up is when the company makes a statement as to the drugs status.