Full disclosure...I only own 200 of the June $2 calls I bought all of them @ .05...So with fees I can only lose $1200. I normally would have taken enough off the table to atleast have free options but I was busy and didn't put in the order. So, , After looking at the 8k and the fact that Management is basically rolling over to the delisting smells fishy. If they were going to BK...Why pay anything to your marketing and manufacturing partners? If they really thought that the lawsuits regarding the deaths had any teeth, they would save that money for lawyers fees and settlements. The other companies would get 0 in BK. Secondly, management has a fiduciary responsibility to its shareholders. By rolling over and not fighting the delisting, they are opening themselves up to even more class actions. Unless...And this is just me thinking out loud,They have already made a deal with a buyer for the omontys rights and the buyer has agreed to assume the litigation cost of the deaths?...It would make perfect sense for a buyer to use this black cloud leverage to force contractual partners to accept a discounted payoff before they took over. A takeover would also make a delisting a non issue. This is a total gamble at this point but Im gonna ride it out and either lose my 1200 or make...???? who knows? Good luck all!
I am curious just how many shares are in the hand of Retail. As for the institutions, I think it will now be a lot higher than 50% that was reported end of march..I also would like to know about the total shares held by employees and insiders. Also a couple of million
Had I seen you post earlier, I would not have bothered with mine. (Food for thought).
Will it be a purchase of the IP which will give cash for AFFY to meet its obligations, or will it be a buy out of AFFY as an entity?
Some very sharp legal and financial minds are putting this together.
The real question is; will they throw the share holders to the sharks, or do they have morals?
(We know where the lawyers stand. Management?)
I am not a lawyer nor could I find any specific legal language regarding the contracts . I am going off the assumption that a company that was worth nearly a billion dollars had really good counsel when those contracts were signed. In the US, a corporation is its own entity..and when that entity is dissolved in BK, the contracts promises etc, generally become nullified. Again, I am not a lawyer so don't act on any of my opinions...And as far as morals are concerned.... I don't ever invest in a company based on the morals of the executives.
"By rolling over and not fighting the delisting, they are opening themselves up to even more class actions".
Good point. So, Takeda cannot get O that easy buy AFFY can claim we are a shell company no business and ok to go delisting. But my question is there are lots of equities might have only one product and in a similar situation or less degree with no product, will they all go delisted? sounds not correct. Second thing if it is true, then AFFY and Takeda should have known this before they made AFFY as a shell company. Knowingly driving AFFY into delisting calls for class action lawsuits for sure. Getting very interesting.
Hey Marzan... This is cut and paste from etrade. If a stock fails to maintain the minimum standards for price, trading volume and float prescribed by the options exchange, option trading can be wound down even before the stock is delisted by its primary market. In that case, no new series would be added at expiration. Trading in existing series would continue until they go "off the board". If trading in the underlying stock is suspended by its primary market for an extraordinary reason before the expiration of outstanding options, the options exchange will specify a procedure for the orderly liquidation of option open interest in a special bulletin.
Excellent post. It makes sense. I have a feeling the buyout is in the bag. As a result, the delisting is a moot point. Professional CALL buyers were fully aware of all these "non-events". A premarket announcement will take AFFY to above $5 in a heart beat. Thanks again for your common sense and logical post.