Cyclacel DID NOT receive, what CEO/Board/etc., felt were "favorable" BUY OUT terms from any companies that may have been interested. Therefore, they recognize the costs of bringing any
drug to market and felt a need to position themselves NOW--vs. LATER to ensure that potential
investors were "comfortable" with their financial well being.
Don't think for one second that ASPIRE doesn't believe they are going to make money off this deal.
While ALL LONGS are ALWAYS HOPING for a HOME RUN--- don't look at this as a "walk". I
prefer to think of it as FINANCIAL POSITIONING which, by the way, began at $6.29 --so those
buying right now at $6.10 are already in the money.
At any rate, like someone on the board already has mentioned, it NOW APPEARS it WILL NOT
be $20 any time soon, it DOES NOT MEAN it will not be $20 ever. If someone knew that, they
would be selling their crystal ball, not screwing around with $6 stocks.
ALL the aforementioned is merely my humble opinion. It's your job to complete your own due diligence.
Good Luck to all HAPPY HOLIDAYS
p.s. We just had ANOTHER eye opener last week. If you LOVE someone, tell them EVERY
time you get the chance!!!
Here's an alternative view. Almost anyone with a brain knows the world has changed for CYCC. And true they may not have a deal in their pocket yet (but they might be working on one). You have to ask - if you were a hedge fund why would you take a deal like this when 1) you have to commit $20 mil.; 2) you don't know how much stock you can purchase and; 3) you don't know what price you will receive. So, why would Aspire do this deal?
Maybe, because there is a higher degree of certainty that CYCC will get partnered up or bought out and by helping CYCC cover a base now (in the interim) then downstream you may get participation in the next round (whatever that is). In the event there are any delays for CYCC they are covered with the Aspire interim. And for Aspire, if the obvious next step occurs for CYCC then you just hope there will be some kind of decent return.
I do agree that the deal "tells" that CYCC does not yet have the "Dealio" at this moment. But I also believe that this deal "tells" a lot about how CYCC's leverage has increased by a magnitude. Spiro gave away very little for this round. The times are far different from the old austin and marx days. Another possibility is that there may be a deal working and that this interim was an insurance policy in case it falls through or the right numbers are not there.
It's fun to guess but the roadmap is getting clearer and clearer. AMHO. GLTAL.
Gosh, are you really dumb or just pretending? CYCC only raised $1M now. They have the OPTION, but not the obligation to raise the rest at the time and price of their choosing. The option is prudent to have in any case. But ESPECIALLY prudent would be to have this if the company received serious buyout inquiries - because this option enhances their negotiating position as they won't be desperate to get bought out too cheap.
By the way, at the time VPHM reported surprise profits, they were on the Reg Naked List for a period of time, just like CYCC is now. Those shorts got burned, just like CYCC shorts are likely to do, which is why they are fighting like heck to keep the price down as they make an orderly exit from the stock. I took advantage of their efforts and am comfortable doing so.
I applaud your courage. I believe the shorts are clearly taking action to defend their position, and they will continue to do so for some time to come. I just hope that they have seen the error of doing this now, and that they are working their way out. If the end of day rallies that there have been lately are their buys to cover, then good riddance. If not, I wonder who is doing this so consistantly.
You really can't tell much by the market action this early. I still remember that VPHM came out with a surprise profit a few years back, but the price the first half a day went down and not up. Thereafter, it started up and was a ten banger in just a few months. No question that this is now a more appealing stock. The company has funding, which was concern to me, and has backers that believe in the science and potential. How can you lose in the long run by buying at these prices?