Depending on how you WANT to READ the 10Q, there's no doubt that whom ever wrote it was trying to cast a very negative, dark cloud over AFFYs' outlook. Which begs the question....Why not just file BK and get it over with? Who benefits from a this stall? Anyone trying to accumulate shares, thats who! BIG HOLDERS maybe! If they file BK, they would FORFEIT the "O" payments-not gonna happen. Thats why they will have to be absorbed by Takeda, there is no other option in order to get the payments! Affymax is just stripping down to their barebones (reduce staff, operating expenses,ect...) to do Takeda a favor before merger. Takeda will just pay shareholders for the potential payments. At what discount is anyones guess!
Interesting that Takeda (TKPYY) stock price is going down. It is true that the didn't forecast good #'s for '13, due to investments designed to drive mid to long range growth (Inviragen-aquisition,Ligocyte-buyout,Affymax-?) Both companies were private, and were CASH and milestone payment deals. No stock was issued in the deals. When companies offer cash AND a specific # of shares in a buyout, they would like there PPS to go down, this reduces ultimatley what they pay for the company. So it makes sense that they plan to make a tender offer by the price action of both stocks-Takeda down and Affymax up. Affymax stock is up in volume and price because the deal has been leaked, and Takeda stock fell due to ...poor forecasts, a leak.. "people in the know" see future dilution of the float, and how it will help reduce the deals bottomline.
The AFFY executives are really the primary beneficiaries of waiting to file for bankruptcy after the shareholder's meeting. They will be paid their golden parachutes/termination compensation while AFFY still has the cash. Afterwards, Chapter 11 reorganization will be filed. A reorganized AFFY may emerge still owning the Takeda milestone/royalties deal, free of litigation worries and flush with new financing whether through debt but most likely new equity. The current AFFY shareholders will be given the opportunity to buy new AFFY shares, but the old AFFY shares will become worthless or nearly so. That is how Chapter 11 reorganization works. Ask the GM shareholders. They will tell you so.
Wow, your posts show total ignorance of the law. Every bankruptcy court does a "look back" to make sure nothing (NOTHING) has been pilfered (under any illegal or LEGAL construct) during the period prior to BK. Such acts are FELONIES, ALL PROCEEDS WILL BE SOUGHT AND SECURED TO THE MAXIMUM EXTENT POSSIBLE. So unless you're suggesting that management is intentionally seeking jail time for such manipulation with full restitution of such "parachutes" (PLUS PENALTIES that will personally bankrupt whatever they have left and leave their families with NOTHING), then your argument has NO LEGAL STANDING...BUT NICE TRY!!!