Riddle me this all BUY OUT posters ..... why would KERX do a $55 mil offering if a buyout was in the works. Makes no sense.... in fact if even a partnership deal was being considered you would think the CEO would of held off on offering as cash would of been available from cash infusion by prospective parnter. Not saying a deal isnt possible in future but right now the logic meter is flashing no deal in pipeline right now. Thoughts
selling the company right now just makes no sense..without FDA approval we can get just 1B at the most for the company, after FDA approval this company will be worth at least 2B-3B, I strongly doubt there will be a buyout before FDA gives us the nod, on the other hand partnership can happen any day if KERX decides to take partnership rout
Exactly...blowing thru 2.5m/mo and only 20.5M left on hand....if you are running out of cash you will roll over as your cash evaporates.....this allows them to stay in the game for partnerships,buyout, etc.
Sentiment: Strong Buy
Not sure that makes much sense. If you issue more shares it increases the total BO price but not the per share BO price. Its like taking a Bank loan to put an addition onto your house for $20K . The value of your house just increased $20K but your debt increased $20K as well...a zero sum game. Additional shares are not real debt, at least not until someone or some company has to buy them back i.e. BO. I believe that indeed the money was needed for negotiating, but not a BO; rather, negotiating to manufacture Z and demonstrating to the production facilities that Keryx has the wherewithall to pay for it.