My understanding of bankruptcy after watching the Lehman Bros debacle is, for the sake of simplicity , and with variations.
A company that declares bankruptcy is 1] allowed to reorganize and terms and conditions are determined during the BK proceedings or 2] the assets are sold off and proceeds are distributed to creditors in order of priorities, ie: secured debt, bonds, loans, pref. stock, etc. common stockholders are at bottom and very rarely if ever get anything. There are a few different forms of bankruptcies a company can take ie chapter 7, chapter 11 etc.
If a company is bought out, privately, publically, merged, etc. the terms and conditions are spelled out in buy out agreement that management agrees to and accepts on the stockholders behalf.
This is a very general explanation to the question you pose.
At the lose for present shareholders, it now appears that the current financiers and management will take it out just prior to or in bankruptcy. IMHO
I was only using the ask price at the time of post, I'm unaware of any offering by company if any. I believe the equity offerings management has done in past have provisions that are about to kick in and not to retail shareholders benefit.
Yahoo MELA summary page, left side under profile, key statistics. Seems like something is "afoot " at MELA if yesterday and todays price action is any indicator. One must admit this present management group is a piece of work.
The device, or one like it,, patents and technology will be industry standards in the years to come, there is the positive. Here is reality, Management will destroy present stockholders and present corp structure. They make the Lehman Bros management team look like genius'. Why is your sentiment buy ?
$1.90 per share = $9,215,000. It will not be long now before this company gets taken out. Someone like Dr. Frost over at OPKO should, buy it with pocket change, just for the patents. My bet now is the present financial group controlling MELA will drive the PPS below $1. blow out present stockholders and take it private........
Agree with " it is simply business ", to many people lose sight of this simple truth. May ones capital go long and ones health grow strong. Health, happiness and prosperity.
I have stated many times I believe in the technology, concept and device. I'm prepared to take a yearly tax lose, rather than sell out totally at this time, as I believe that some entity will realize what I do and buy ir or the SEC will see what management is doing and act, unfortunately that will come after the fact if at all
I have been trading around my position for over a year trying to recoup what has been a mistake on my part, to date, and am fast approaching breakeven which in this case I feel is a major accomplishment,
Insurance coding and insurance reimbursement is very important to the success and revenue generation of drugs and medical devices. It appears that it takes 18-24 months after FDA/EU approval to get them. Patients, Doctors, hospitals, clinics, etc. are slow to adopt and use drugs and devices until reimbursement is obtained. OPKO's serious revenue generation seems to be 2-3 years out at present. Will OPKO need to do another equity/stock offering before then?
I'm of the belief that the present management team in conjunction with the current financial groups supporting MELA over the past year have no intention of keeping MELA solvent in its present state. It is in their best interest over the next year or so, prior to insurance coding and reimbursement, to drive the stock price down and then take it out. It should then take 18-24 months to generate sales and revenues while in private hands. If my perception of Devices potential is correct they would then bring a company public between $100.-200 million. Not a bad return .........................
One doesn't need to be a weatherman to know which way the wind blows.
Does anybody know when OPKO filed for insurance reimbursement coding. It's my understanding it could take 18-24 months or longer from date of filing. If past experiences with new devices is any indicator, revenues from sales will be very small till Doctors, clinics, hospitals, etc. can pass on expense of machines and tests to patients and/or insurance companies. Has anybody seen any projections regarding revenue generation for 4kscore over the next year or so ?
If management would release a plan that showed revenue generation you might have a chance until then expect news of further dilution via an equity/stock offering.
Possibly Santa comes early and somebody/thing buys the patents..........................
I have been accumulating also. Would like to see some new contracts before I continue this is still a new and highly speculative company with a large short interest that will protect their position.
Today , prior to close, stock price gets driven down hard on blocks of 100 and rises slowly on blocks of 10,000. Short traders/ MM are shaking weak hands hard. One nice piece of good news and we see $.75-$1 in a New York minute. Small float, low priced stocks get played to much imo. Just part of the investing/speculating game.
WOW I didn't mean to create a threadline about managements ineptitude, my opinion has been documented in past posts; but rather a financial question regarding possible future dilution. My projection is if management is allowed to proceed, on current course, that it will need to raise capital prior to insurance reimbursement, if granted, and then again to finance sales resulting in a further devaluing stock price. The current value of the device, patents, etc. defies current valuation IMO.
Current values in the healthcare market place seem to dictate that MELA is, and will remain, in wall streets dog house for the foreseeable future. One can only blame management, past and current, for the situation. The current stockholders and Melanoma patients are the casualties. I think a deep pocketed healthcare activist, not the current financial engineers, is needed to rite MELA before all is lost. I agree with those who advocate actively holding management financially and legally responsible.
I have a few moments and I'm thinking about how many more equity/stock offerings [ further dilution ] Mela is going to do before being able to generate revenues being that insurance reimbursement is still almost 2 years out ?