Utilization of Diabetic Companies while in Private interm holding period.
This phase is designed to allow the corporations to develop wholly outside the public’s eye. The critical factors of one of the major companies is, using Venture Capital funding to create a worldwide marketing sales force to meet with doctors with samples, as well as retailers to get revenue driving with other OTC products they have approved. Both companies have products in their pipeline and I feel that would be best if they were spun off as separate I.P.O.’s (be more legitimate) once the original company has growing revenue, net income, diabetic products in full force, and growth is at a medium growth stage and then I.P.O. itself. One of the diabetic products was forced through the FDA as an IND and I think that this has to be restructured so that Doctors can prescribe their patients this product instead of insulin needle injections nor insulin pills in intervals instead of “in severe to life threatening purposes only” like the current product is classified now. This is unneeded but I understand why the company chose to go this route at that point in time. This needs no explanation.
Another problem of this current company is the type of convertible financing they are performing to “stay afloat” and do what R&D they can for products in the pipeline. They have been doing this funding for years and no real significant development on their part has happened. With the last financing deal they agreed to allow their funding source to purchase 100% of their outstanding shares at a discount to market price. This will bring their outstanding and float to over 740 million shares once fully exercised and will most likely bring the stock price to .01 or to sub penny level. This will just keep the snowball getting bigger and bigger causing even worse dubious funding transaction down the road till their stock is trading at .0001 with 20 billion shares outstanding in my view. If the total 740m shares are in the float at .01 the market capitalization is $7.4m and makes the products they have very attractable. No negotiation will be needed for both proposals. As I sent before hostile-takeovers happen all the time and there is nothing the company can do (just look at Dell) with the majority of all employees fired including Officers and Directors.
I think keeping the Officers and/or employees on board who have been developing the products of both companies to be advantageous as they know the science. The problem with most scientific companies is that when they pitch a funding firm, they do not know how to sell the deal. I ran into this many times as a broker. The CEO knew all the ins and outs but only was able to describe it to the sales force in the way he knew how, that just confused the brokerage firm and turned the brokers off to the whole investment. This is where proper VC can come in if needed and do marketing strategies for the company(s) if even needed. This could be relevant in a conference with Doctors that can prescribe these products though.
The second company does need more time to develop its flagship products that will completely stop the needle #$%$, strip monitor market. I do not see this as being a long threshold of time with the given support and proper funding needed to focus on bringing them to the market. They also have a segment of business that can be an additional I.P.O., which they have strong relations with the other parties.
In conclusion I feel it is best to find a VC firm to back the merged to companies to get the businesses running in the right direction. Hopefully it will be no longer than 2016 when the expected Global Diabetic Market Supply is 114.3 billion. I also think that is a great name for company that is an I.P.O. “Global Diabetic Supply Market” (trades GDSM on the NASDAQ).
You have read enough from me and you can make your decision if you would like to work with me or not on a one on one basis. If not, this will still be pursued by me. There is another company close to the first one I spoke about that I could go after but its market evaluation is extremely overvalued. I hope you see the value in this from my first letter to my second and take my hand and follow me on this adventure. I can see this all coming together clear as day and I hope you do as well.