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PharmAthene, Inc. Message Board

  • cash2go cash2go Aug 2, 2013 10:05 AM Flag

    $1.70 = $3.50 of new stock

    Amount of stock will double, news company is worth $3.50? Shocked it's held up. Had no idea PharmAthene's goal was to expand pipeline (ratchet up R&D).
    Sold my shares until I understand the merge and why PIP executives wanted to split coming ST-246 cash flow with (another company) 50/50. Guess they are not concerned how current shareholders don't benefit from this merger?

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    • Have you read the 8-K and 425 filings? A little dry and chock full of legalese, but the gist is MPM makes out very well, but not at all unfairly (their various funds combine to have 1.7% of the common, warrants on another 0.7% more, and 11% of the preferred via convertables). They own about 11% of the fully diluted PIP outstanding (6.3M of 59M, which includes a bunch of warrants etc). Thus MPM will still own about 11% of the whole enchilada after the merger. If you're looking for a scam in this deal, that's about as close as you're going to find. In other words, not a scam at all, but a shrewd move that puts in place a CEO who has experience in M&A, and puts influenza, CMV, and cancer meds in the PIP pipeline. The new CEO will do quite well personally in this deal, but is getting paid in a manner that very much aligns his interest with shareholders. Basically, this deal is a gut check to the 10% short interest here...you can see from yesterday's volume that the bid is substantial, but no one should assume buyers are trying to do anything other get shares as cheap as somebody will sell them. Thus clearly a pyramid-in rather than back up the truck play, but will be a big winner for the patient.

      Sentiment: Strong Buy

 
PIP
1.70-0.02(-1.16%)3:59 PMEST

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