Hi Vanlo - let me explain and then I will shut it - yes I know how to read, it is in the understanding ... So PIP says it was a merger of equals. I voted no long before Prescott advised as such (posted my f** no weeks ago) because I felt it was not a merger of equals - it seemed like PIP bought Theraclone and over paid nonetheless. So yes, I read what they said, but didn't believe it. If it were truly a merger of equals, why would PIP have to dilute 4x (or more precisely issue 4x more shares than currently outstanding) to pay for Theraclone. The stock would have went way down while Theraclone and PIP execs lined their pockets. It was a clearly a win for them at the expense of PIP shareholders. Thanks to Prescott for doing their due diligence.
Nope - an email from your mother - she said go f** yourself. Die Jour (Die Today) yeah - sounds like a plan #$%$ hole.
Just got an email stating the merger has been terminated! Let's see how the stock reacts - I assume it won't move much, maybe a drop then a recoup???
Let's call it for what it was - PIP bought Theraclone - not a merger, not anything else. The info that was given to shareholders was spotty at best - not happy with the management team at all!
Yeah - so I voted. One of the votes asked if we grant PIP the ability to raise 175M in additional shares (to use for the merger with Theraclone). That would dilute us 4x. The choices I got were yes, no or obstain. If there was a #$%$*k no button, I would have selected that.
4x - really???? No wonder we are stuck where we are. F- the merger - merge if you want after the settlement. Not a good deal IMO. I read everything - just think PIP is worth more with the birds in hand + the tax considerations (and yes, I am saying the win over Siga is a bird in hand - too much money was already bet on PIP getting at least 1/2).
How are you voting Tee? It seems the short timers would all vote no and get that potential $8 in their pockets - but long termers may vote yes thinking PIP is better with Theraclone.
I only have PIP in significant quantities - think VC Parsons comes out with a ruling in November, and by 1Q 2014 we have a final judgment.
For the third quarter of 2013, PharmAthene recognized revenue of $3.5 million compared to $6.7 million for the same period in 2012. Revenue in the third quarter of 2013 was primarily derived from development contracts with the U.S. government for the Company's biodefense product candidates. The decrease in revenue in the third quarter of 2013 is largely attributable to the substitution or completion of specific activities designated under the SparVax® contract, as well as the postponement of certain activities arising in part from the Food and Drug Administration (FDA) clinical hold initiated in August 2012 and subsequently lifted in May 2013.
Page 465 has an outside opinion to the fairness of the merger from PIP shareholder perspective, and it does include SIGA 50% revenue stream as per Parson's ruling - but I really don't get it. It does not look like a merger of equals to me - Theraclone does not make enough money (and has a loss).
I understand why they did it - PIP, IMO, is now a much more reputable company (it now has a really exciting pipeline - but that pipeline is years away (years and years of dilution IMO)), so, I just think they overvalued Theraclone.
The combined company plans to issue additional equity securities in the future, which may result in dilution to existing investors (see page 55).
Yeah - as soon as Parsons rules - I AM OUT!!!!
PIP's US Federal net operating loss carryforwards of approximately $134.3 million will begin to expire in various years beginning in 2021. Theraclone’s U.S.federal net operating loss carryforwards of approximately $41.2 million will begin to expire in various years beginning in 2024. These limitations, in turn, could result in increased future tax payments for the combined company, which could have a material adverse effect on the business, financial condition or results of operations of the combined company - (PIP will be paying higher taxes too).
Wow - take your time looking through this - Theraclone in 2011 had revenues of $8M, PIP had $24M. 2012 looks like the PFE anomally, but PIP does not inlcude SIGA award. NO WAY LOOKS LIKE A MERGER OF EQUALS TO ME!!!
Haven't gotten to Annex FA yet (apparently this annex lists reasons why 1:1 merger was optimal for both companies) ...
Looks like PIP wants to add more shares to the float / dilute current shares. I really want to hear from Teebrane on this - but to me something does not seem right - yeah, I understand what Theraclone brings (pipelie, new technology that PFE likes), but if Theraclone bought PIP, why does PIP have to give Theraclone so much equity (way above what PFE is giving Theraclone). Why didn't the headlines read, "PIP buys Theraclone"? In essence, that is what happened.
Does not make sense to me. If Prescott pulls its 5M shares, I will definitely follow - think we are years and years away before Theraclone shows its worth.
I saw your response yesterday (merger of equals, your calculated price target, insiders who bought - for a reason ...), but for some reason the Yahoo MB is not showing it today. Love hearing your insights! I think I will sell at $4 on a spike if / when it gets there. If it retraces again, may pick up more and wait to $8.