The Japanese firm doesn't loose anything. And, if they knowingly cooperated, there must be a secret understanding we do not know of. The current SP laggarvdness is due to this very reason; but, if you notice carefully, you will see that certain major buys are going on. Of course, the insttutional shorts may be part of that. In any case, the trading volume is pretty high to rule out a possibility that some players are seeing what I am seeing.
I guess it's a clause that will allow and force a large pharma to outbid the Japanese firm's offer. My feeling is that Wotton and the board are playing a game after they saw that large Pharmas are hesitant to plunge in yet. However, Wotton and the board want to tie up with a large pharma NOW to get out of the Ph 2 trials smoothly and begin commercializations, knowing that the SMD/AMD markets are huge and must get into it before others get in. Ocata doesn't have enough financial resources and perhaps do not want its SP to be manipulated by WS dogs if additional financing is required. If so, it's a pretty smart move. I believe that Wotton and the board know that the deal WILL be challenged and force a large pharma to plunge in to let the gem go to Japanese.
Are you from the dark continent?!! Wash your brain of all impurities before posting anything so that your time is not wasted for stupid posting!!
Simple fact of the matter is that the SP before RS was almost always equal to or greater than 8 cents, when the company had unsettled litigations and the trials still in Ph 1. Now, those litigations have been settled and the trials are triumphantly in Ph 2 and, also, the company has advanced its patent portfolio. Clearly then, the deal is a give out to the Japanese company and, hence, the board has failed to fulfill its responsibility to look for the best interest of shareholders. Yes, as some will argue, the company's technology will be helped; but, if so, it will not benefit shareholders; it will benefit others. Thus, the court must place a stay order and ask the board to modify the deal to the advantage of shareholders. And, what about those shareholders who have held the shares for a long time and bought it at a price more than 8.5cents ( presplit)? I have no doubt that this deal WILL be challenged and that the U.S. Govt will not allow it to go through.
Ocata will have less difficulty in raising money since the SP is doubled!! The announcement has drawn attention of many serious potential partners who will not let the company going to a Japanese outfit so cheap!! Just wait and see what happens now!!
The deal incorporates certain conditions to be fulfilled. And, that's the catch. So far, on the first day of announcement, two law firms have apparently determined that the deal is not in the best interested shareholders ( I.e., there can be a better deal) and, hence, the board did not act in the best interest of shareholders. It is also possible that an another suitor may evolve who will give a better deal. Therefore, and the fact that the deal may be in violation of a law of the govt of the U.S.A., the court may impose a stay order. I guess this may have been privately understood by the board giving this deal a "unanimous" support to force an another large pharma to offer a better deal which the board may have failed to get so far. I think this is perhaps the game plan.
Especially if the company has enough cash available to last for four quarters and the learned board knows pretty well what intellectual wealth the company is seeking on? (Just look at Wotton's colorful presentation a week or so ago!). And, what will the large shareholders who bought the shares @8 cents a share (prepsplit) think? Are they going to sell their shares to a Japanese company for no profit? What if those holders are powerful WS companies or mutual funds? Will theses companies, the U.S. Govt, interested large pharmas, and certain law firms are going to be silent spectators to let a Japanese company steal their interest so cheap? Just watch how the game unfolds and how this trick by Wotton and the Ocata board plays out in the coming weeks!
And this will bring lawsuits, large pharma actions, and U.S. Government's denial. Perhaps Wotton is playing his cards to increase the market value of the company first through this action for his implementing his/ board's secret future plan. I will suggest holders to keep holding until the deal goes unobstructed which is doubtful to me at present. However, this is my view and it's your right to do what you feel is right for you.
Box, the potential value of intellectual wealth of Ocata is several times the deal price. Ocata sits on certain breakthrough products and unique procedural rights. Just review what those are and you will realize that these have a potential market far greater than Geron!s IMET. I believe that the deal is not done until Ocata shareholders approve. I se a problem there and the Japanese company may have to modify appropriately or forget getting the company so cheap. Remember that the SEC approval or the U.S. government approval may also be needed if a company passes on breakthrough technology to a foreign outfit with full rights and other large pharmas too may do something to let the Japanese take away the rights so cheap!! Just watch the game. I will keep my holding in Ocata until the deal goes through unobstructed. I have a strong doubt that it will get modified to a better deal. But, that's my view; you have to take action as you feel it right.
Smiggy, how much did you loose shorting OCAT? Do you learn something from that experience? These biotech companies' management are prone to announce such deals or news abruptly! It's just a question of time you will get flushed for Geron too if not wise enough!! Therefore, it's just wise to accumulate at lows and hold if you are invested in a company liked Geron that has a proven breakthrough product. Good luck if you still want to act like an idiot!!
Box, I think that a law firm will try to stop the Ocata deal being too cheap and other interested large pharmas may do something to put road blocks. Just wait and see. Regarding Geron, I think we have to wait till what the company decides for the opt-in/opt-out option and what it acquires and how!!
This announcement proves that Scarlett is a better CEO than Wotton and Geron board is much wiser than Ocata's. I take back my opinion in the past that was otherwise. Sorry folks!
The other interested big Pharmas will inspire lawsuits to stop the deal for it being a giveaway or may offer better price to hold the deal from being executed. Just wait and see. One thing is sure: The shorts are in deep water!!