I am sorry I realized too late that we have a CEO that is pretty weak.
The Board is also a huge disappointment. Look at their CVs. Pretty solid backgrounds yet they never help. They have a VC guy on the Board. He is pretty useless.
Pharma...Raising capital at the price we did was more defensive than anything. Their bankers are morons and I am even surprised at our large investors who do not give us much help other than wait for a deal like the one we just sold. As I mentioned in another post we need a real "Come to Jesus " call from Knudson and Lea. We also need to hear from Hancock who I think is the best asset we have. The reimbursement person from JNJ should also talk to us. I feel the centers and surgeons are a lot bigger and Sikora is on the loose. I mentioned getting together with a pill company. All their sales are awful and if any of them wanted to build an obesity franchise a deal with us would be pretty good. That said, we have to show sales. If by some miracle the insurance industry wakes up and realizes we have a huge money saving device then all bets are off. Locaserin costs $12,000 a year for Type II diabetics We would not need anyone if they got smart.
But the guys at the top of our little company are not arrogant but passive. They have great clinical skills and understand the science. But at 38 cents that makes no difference. I will give them 2 quarters to get the act together. All energies in the last 3 months were spent on the balance sheet. From here there are no excuses.
No reason right now. He is a deep pockets guy who owns what 10% now maybe. The investors who bought the latest deal may have CDA and may know more than we know. If I was Douglass I would get on the Board and maybe look to find partners in the obesity space. The pill companies with a load of cash like ARNA and OREX have currency in their stock price and we would make them a huge force in the obesity space. Do you think if ARNA bid $2.00 a share for us today they could buy us??? VBLOC and a pill could make sense to me but I feel ETRM has 5 quarters of cash burn. If they start getting cash flow they can extend the runway. The next six months are the whole game. Potential foreign partners I am told want to see the U.S. uptake before they make a move.
I blame them for financial mismanagement. I think after FDA they thought the price would be higher than $2.00. They only sold 6.million shares of the ATM which they now realize was a total blunder. But they made a Board decision and it was a tough call. Now it is all up to the sales guys and the JNJ woman to get the process going. No excuses now that they have the capital.
Remember these are the same guys who said they wanted 25 centers and 50 surgeons by year end. I would say we are far past that now. Also, we are dealing with a very slow and someone passive group called DOCTORS. They take to new procedures very slowly.
I suggest you call the CEO or COO or CSO and speak to them yourself. They are not telling me anything confidential but I like to hear the voice and ask questions and make comments that elicit responses. Again, they know they made a mess and got many large investors to back them up again. It does not take a genius to average price of the large investors stock is not $1.00. I would not write a letter. It is better you call their secretaries and set up a call.
I have encouraged them to get out in front of this latest financial fiasco and update all of us on the commercial progress of VBLOC and their plans.
I asked how has acceptance been for the device and from a surgeon point of view they seemed very confident. I said has the lack of capital stopped center growth. The answer was assertive.
NO! I asked about the VA..non-commital. The device is not an issue. It has never been. I asked about the next generation VBLOC and they could not comment. If I had to guess implants are growing as the centers are in higher income areas. I would guess one per surgeon. The doctors want to have " first in your town " advertising.
I spoke to the company and they are not happy. They screwed up by not financing six months ago. You may not see it, but the market for small caps raising money is tough, especially when you have none. They did say existing shareholders did buy the bulk of the deal, and why not. Talk about averaging down. I told them to get out in front of this and have a conference call and get the sales guy and the woman who is working reimbursement to be the main speakers. Knudson is useless as far as I am concerned and I would fire him. If Kevin Douglass gets active I would urge him to act on the Board and executives. We have dead weight. Deals on our technology would not work with a weak balance sheet. The whole plan now is VBLOC. I told them I want to hear about centers, surgeons and 48 month data if we have it. I told them their IR/PR is worthless and they have to do more to keep the shareholders on page one.
I still think the science is first rate as I can read a patent and obesity the number one killer in the world...next to ISIS of course. VBLOC will make it but it will take longer. A whole lot of what matters is the reimbursement phase. We get that it changes the game, but they have to work harder. The financing mess has been going on for three months. I told them be honest with your shareholders.
Do you think he has the capital to start 121? He just paid out $11 Million and if the FDA drags its feet he may finance.
but i think there has to be a ton of short sales from the cancelled deal..20 million shares traded...these people better have a call soon. i would like to know why i could not buy shares in the offering...
Yeah the guys that run this operation are amazing. Big investors like Kevin Douglass should work to change management. There were other options. I would have bought a convert. Their bankers are amateurs and the Board of Directors is almost worse than the dopes that run the company. They operate in the worst disease in the world and have a world class product. Lets hope the sales guy gets it in gear.
We have heard nothing on centers, surgeons or insurance. The company has to have some sort of call to at least get some credibility.
Like you the device is the real thing. Patience is a virtue.
Sugar..the selling is arbitrage. Just like the 20 million shares that trade last week. The folks who bought at 50 cents will take the haircut to 38 cents to keep the 60 cent warrants. If the morons at the company had half a brain they would cancel the latest deal and do a convert with kickers and the shorts will have to scramble to cover. But I do not think Lea is that smart.
I didn't add? That is a low blow...But I agree..Let the idiots try to knock the stock to zero...At 38 cents why bother. You have been a good guy. See you in the next life.
They spent two years getting a great product approved but the Board was asleep and the CFO was totally inept. Small cap stocks are #$%$ shoots but these guys had a good product which could be great but they just wrecked the social fabric of the company by forgetting to finance it.
I have spoken to Lea. He has 1.6 million shares and is basically broke unless he can get the company's product a sold. Sikora left his job and became CSO and his 750,000 options are down 70%. . You think he is a happy camper? I gave management a pass. We should have shown them the door. The banker and lawyers screwed up. They didn't know the NASDAQ rules? Small caps need good management. We don;t have it and we better get it.
And don't call Jody. She is naive and out of the loop. They better do a conference call soon or some to explain this fiasco.
Bottom line? I thought we had an A team....We don't
Get rid of management. They are inept. I have been urging a financing for 6 months and those dopes did not listen.
They have a great product but the CEO and the CFO have done nothing to help the sales guys by getting them capital. The hit all the employees took due to the ineptitude of the CEO and CFO is amazing. Great product. Dopes in charge. I gave them the benefit of the doubt. Expensive error.
You make the serious mistake of assuming 90% of the people who post on this board have a clue of how corporations think. Great analysis.
Therefore they still got the deal done but the B Warrants were not attached. Why that is unforeseen is beyond me.
If I had to guess it may have had to do with the total potential amount of new stock versus what was currently outstanding, but I will wait for clarification.