Holly #$%$ we might be going private @ $8.25/share. This is really positive and is short of the full potential of Nupathe. Is a very good move by the orginal investors because it would only cost them $80 million and they could double their money in a year when a big pharma buys them out. Might be a great deal if it happens.
What the #$%$? In checking with my buddy he said that is true. If a small group, ten or less have controlling interest they can just snap up the company in a private equity offer. They aren't limited to the $8.25 but would prevent any potential lawsuits. However so would $6 and that would only cost them 60 million. Crud, I was hoping for a much bigger buyout price than the 6-8 range.
Hey Doc, do not see that is happening. If they would invest $80 million more, they would have just go alone with that and "z" will be a big success.
I guess all of us are afraid of dilution. I was pondering the possibility all the day today. My guts just tells me that it would not happen. if PATH offers the secondary, at 20% discount of today's closing, it would be $1.5 and the PPS will be driven down to $1.25 or even $1. SFE at el would not do that. Even accepting the "low ball bid" offering plus cancelling the warrants is much better. Those folks are supposed to be smarter than us.
A smarter move, however, is to give up the warrants (it is almost out of the money anyway). By lowering the overall outstanding shares to get a better bargain power. Do not take all cash when selling., do take some shares of the buying company. Deal will be done.
Long term I am still thinking PATH is worth to hold. Short term, my DEC13 call might be worthless. Last word, it depends on our luck. good luck to all longs.
Wait a minute doc, what stops them from buying out the remaining 10 million shares for lets say $6/share? Also heard the same thing, could go private. That would only take about $15-$20 million each at $8/share or lets say $6 and then after a year they could sell out. What can we do to stop this? I would think that if it were a simple vote the majority wins and we would have to sell at $8/share. And I thought this would be worth at least $20/share after sales started coming in.