All: I've been buying/selling biotech, pharma and specialty pharma stocks for a long time. I've never seen a company lift a poison pill to do an offering. Certainly no institutional investors would invest if this type of pump was used. As such, the removal of the poison pill was either a term of the offering (demanded by new investors) or will make sense to us after the offering.
If this was a blatant pump then I will personally call the SEC. I don't think it was though. I don't think any investors would put in money under that condition. However, you never know what tactics a company may use to try to pull together fresh funds. What would make this to the extreme of unethical would be if they put the poison pill back in place.
I'm counting on the company to help us make sense about this decision. I'm looking forward to seeing the terms. It better all be above board....it's really not that hard to bring a complaint against a company.
They are taking away the rights of the shareholders, sold off almost all their outside assets, and now made this huge public offering. All this at a time when they promised that Abbott would 'surely' launch Vitaros in the first quarter of 2011,,, eh, 2012,,, eh,,, no, no 2013. They have milked shareholders dry, and are still getting away with it. Amazing. If someone told the people on this board that they entire board of directors were photographed sipping margaritas in the Bahamas 3 months ago, and throwing money in the air, people on this board would call it a 'great' sign.. that launch will surely be tomorrow.. because 'they know' and the idiots would buy MORE shares. People here deserve to lose every penny they own.
I think this management team is terrible, but this is a case where I'm going against my better judgement and am betting on an asset stable. I'm guessing that the new investors are no more optimistic about this management team. However, we do have news flow coming that could set up an M&A. I think the poison pill was removed as a condition of the offering as this is going to be shopped. Vitaros for Canada has value but Abbott may sit on it just because they can buy the company for next to nothing. EU approval and Femprox are the keys. We need good news on the EU approval.
This really has to be one of the worst management teams ever. No one does these terrible carve-out type deals all over the world. They past CEO can't be blamed either...where was the CFO, biz dev team and the BOD? They all did these deals and they all sat back when lies were told. This is a bad company with decent assets. The assets are not better than decent because of the choppy nature of the deals and the fact that they seem to have given away all of their control in terms of pushing groups like Abbott. If I'm Abbott I'm offering $5 tops because I can sit and wait for these guys to bleed to death.
We need EU approval...that's the key.
And to management - shame on you. You could have done the offering and then announced that the poison pill was lifted. You guys are going to have to earn this one...no one is running you up to $5 again on falsehoods. You need to perform and then give your long suffering shareholders an exit. I haven't been invested in a company this poorly run in a long time...shame on me for finding you and shame on you for not taking care of your shareholders.
Somehow Apricus seems to have operated for years almost as a pink sheet. Most of the investors here seem like they are used to dealing with pink sheets where management teams cannot be held accountable. Have any of your ever spoken with the SEC? I've been around this game for a long time and I've seen more than one executive do jail time for misleading investors and I've seen several companies investigated. I'm not saying that's what should happen here, but many of you seem to have years of experience getting screwed. Why has no one done anything? The SEC does take calls and will discuss. I haven't been here as long as many of you and my stake isn't as large. However, if you think the poison pill lifting was just a hype tactic then that should be reported. My guess is that it isn't a hype tactic. I think the company is technically on the market....what you have to watch out for with this type of company is an asset purchase where they clear off the assets for cash and then try to put the cash to work again (while continuing their salaries). If the poison pill is put back in place then there is a clear case for fraudulent intent.
These guys are clearly bad managers and I doubt that any of them could be hired into a legit company....they're hanging onto this for dear life. It's up to investors to force them to be sold. My guess is that this is exactly what's happening.
If there is a company holding a quality asset, but a poor management team then most of the time the management team will get booted and the asset will be sold. I think that's exactly what's playing out here. Look for signs in the coming weeks that M&A activity is increasing. My guess is that this fund raise will not drive a much better price. These guys are inept.