I don't know the IRS rules and regulations on mergers, NOL's and the $15M currently on PIP's books for this to happen in a manner that puts the most money in shareholders hands. I do think SIGA shareholders should be screaming bloody murder if this does not occur.
What Siga gets in a well designed merger:
$206M plus interest that must be otherwise paid out from court settlement
$159M in Pharmathene NOL's
I think PIP shareholders would also benefit (more than $206M plus interest) from Pharmathene cooperating in making this as profitable as possible for all.
(A wild guess on my part), over $3/share in value if everyone plays nice.
Piper is probably right?
Under the plan, PharmAthene's judgment will be satisfied no later than October 20, 2016 by SIGA in one of the following ways, to be chosen by SIGA:
Payment in full in cash of the unpaid balance plus interest that will accrue at 8.75% after Plan approval; or
Delivery to PharmAthene of 100% of SIGA's common stock; or
Such other treatment as may be mutually agreed upon by SIGA and PharmAthene and approved by the Court
In the event that SIGA pays PharmAthene cash in full and barring any unexpected material events, PharmAthene currently expects that it will distribute at least 90%
(at least 90%), Why would anyone allow these two companies pay taxes twice??? This is now game over and maximize payout time. Hope to see an upside surprise for all the small shareholders.
J.P. Morgan is not going to let the two companies pay taxes twice. A merger set up to minimize taxes could easily save $100M. What you are seeing in your press release is stating one of the options that is on the table for a final settlement. Gonna be great to see J.P. Morgan maximize the payout to all and taxes has to be a major focus as the two companies would pay taxes twice on the same income. Then shareholders pay taxes on their gains.
Good things are possible if J.P. Morgan does it right.
Wouldn't doubt Siga management wants out of all that bad faith brings down upon them. 8.75% and Siga shareholders breathing down their back is pushing them out the door fast as possible. An Upside surprise for PIP wouldn't surprise me.
J.P. Morgan is no doubt looking at how to minimize taxes for everyone to get a quick settlement. Yep, that could work into even more money to be distributed to Siga shareholder through cash or preferred shares.
Only thing I feel sure about is that we will see this come to a conclusion sooner than many think.
Wall Street magic is coming as they split up the company. You will have the same thing but in two halves, great management idea, that equal lots and lots of gains for shareholders. Management is doing something, wow. Maybe there will be ownership in the Brooklyn Bridge thrown in for good measure.
The CEO knows how to sell shares and make a really nice salary. Cramer agrees with something.
PIP management seems to be giving Siga all the rope it needs to hang itself with. PIP seems very cooperative, nonthreatening and keeping a very low profile so that nobody has any excuses to slow the process. Would like to hear more from PIP but I think the low profile makes more sense. Give the Bad Faith boys an inch and Siga would be running to the judge....
Look at the Management team at Pharmathene and nobody is there as they keep expenditures to a minimum and let the 8.75% interest just continue to build.
The world needs a solution as the ( rate) of diabetes and foot and venous leg ulcers are expanding at an alarming rate. The costs associated with the problem...!
EscharEX has hopes of being an affordable solution and help those in the situation turn their condition around. Does FDA give "breakthrough" status for this type of drug? I know it's mostly for cancer and cardiac advances. BARDA has already entered a contract for over $100 million in a yet to be approved impressive treatment for burn wounds. Nexobrid is also a treatment that promises to save a huge amount of money and improve outcomes on treatment of severe burn patients.
Guessing this one is a buy and hold for 1-2 years. Volume is very low and traders could be wiped out.
I realize this is on none's radar. The phase II results were very impressive with a potentially very large market:
Results were even more prominent in the prospective subgroups of diabetic foot and venous leg ulcers, which is in line with the etiologies we are focused on based on the results of a comprehensive market research report we undertook. The topical debridement treatments currently on the market require daily application for weeks and months to achieve complete debridement. A post hoc analysis of our Phase 2 data with EscharEx showed that 93% of the wounds which completed debridement with EscharEx were debrided within 7 days after 4-5 applications on average,” added Mr. Cohen.
JP Morgan in charge and no doubt every detail is now being covered, must be costing Siga a fortune. Bad faith is gone and I'm sure many more in Mr Market are becoming very aware of the how JP is making this exit as profitable as possible for all concerned parties. JP Morgan's reputation is on the line here.
Thanks for posting. Will look it over Saturday and look forward to everyone's input before Monday.
Wall Street is now doing all possible to maximize the payout to both parties and you have Chapter 11 legal oversight for those fearing a Siga...
GLTA, did the extra 30 days of exclusivity just give us a timeline on how soon this is likely to be resolved?
You must be talking the tech boom at the turn of the decade. Made a lot and lost more myself. The fun put Vegas to shame. The Wall Street Boys banked a killing on speculation, manipulation and outright lies.
Just saying option 3 of the Plan could lead to a $3 to $3.50 payout for PIP shareholders within the year, net taxes.
Find me a very stable dividend stock that pays 8% and it's a big percentage of my portfolio, if only I were a fly on the wall. Which we have here when Perelman signs court documents holding him to such terms.
PIP should have over $30M in cash, around 50 cents per share. Find a cash strapped biotech and you get at least 60 cents worth of value by investing in the startup. If the anthrax vaccine has some value via another round of funding and...
GLTA, looks like volatility and the impatient traders wanting full value today are selling at $2.06
The approval of the plan to exit chapter 11 also opens the door to a halt of the $30,000 daily building up in the interests debt owed to Pharmathene. "Siga Wins" didn't show up in the SIGAQ skyrocketing higher
Seeing the stock price finally move towards a realistic final payout to Pharmathene shareholders may be telling us that the end is near? How soon? * Siga also won a further thirty (30) day extension of the Exclusive Solicitation Period through and including May 16, 2016
Siga is in Chapter 11. Siga can hand over 100% of the company to Pharmathene and be in no trouble from the Siga shareholders side. Creditor "rules" in Chapter 11 and we all knew for many years how the Delaware courts viewed this bad faith bunch running Siga. Esopus is now trying to look good in front of their investors. They need material for their coming lawsuits.