Management had been guiding for U.S. Orphan Drug status approvals in June. This is probably their main moat as it gives them 10 years exclusivity in the U.S. Europe has their own version for 7 years (or I might have them backwards). In any event June has come and gone however they updated the process on their cc. The FDA requested additional information regarding their compassionate care patients. Most of these patients were treated in Russia and apparently it is hard to get information from Russia so management was only able to get the information the FDA requested in June, however they expect to get an answer on orphan drug status in the coming weeks.
According to David Green the primary obstacle to getting this status is the number of patients. To qualify you need a patient pool less than 200K. At a market of ~6K for their trachea product they've already cleared this hurdle. I'm not in the medical field so I can't say how likely this approval is, however I believe all but two of the patients who received their proprietary trachea still survive and the two that passed away did so of unrelated causes. One was an auto accident and the second was a two year old girl who died during an unrelated surgery.
It would seem to me results from compassionate care would support orphan drug status however I did notice management seemed more cautious in talking about this approval. They seemed in the past to almost assume this approval was a foregone conclusion. On the cc David Green just spoke of getting a determination on orphan drug status leaving open the possibility they don't get approved. I don't know if he's just getting more cautious as D-day gets close or something in his correspondence with the FDA spooked him but I think the street picked up on this as well and is probably behind recent weakness. This one is probably a binary event on this approval for now. Get orphan drug status and were in for a big move up, don't get it and look out below.
Just being able to raise (or appear to be able to raise) the $590M doesn't mean the NON BINDING offer goes through.
Probably had to show they could get financing for the deal and that's the best they could do.
A good chance insiders were behind the buying after they downgraded to the "Auditor to the Frauds", to cash in on this news.
A. They're not Legit.
B. The offer is fake although a great opportunity for longs to salvage something
C. They're assets are untouchable due to the VIE, what are you going to sue for?
Dude you realize he would have built his position BEFORE he put out his research on NQ or in the $20's. Even if this were a real offer (it ain't) he's made a killing outing this fraud.
LMAO CC I knew this was coming, after pimping this fraud to no end in the teens and twenties you suddenly have a cost basis of $3.5. Who do you think you're fooling CC?
If you listened to me in the teens and twenties you would have done a lot better than the "opportunity" to cut your losses. Hopefully you are smart enough to take this gift before it disappears.
This offer is a gift to longs, NQ is a fraud, you're getting a chance to get out with something left to salvage. It's a fake offer so don't get greedy holding out for the whole $9.8.
Specifically, NQ Mobile has signed a definitive agreement to sell up to 5.88% of FL Mobile, or up to a total of $25 million, consisting of $15 million to Bison Mobile Limited, a division of Bison Capital Co Ltd and $10 million from other investors, at a pre-money valuation of $400 million dollars or post-money valuation of $425 million
One more time if...if this doesn't work find the Bison minority investment in FL Mobile valuing the one segment at $425M
At 60.33M shares outstanding and $9.8/ share that puts NQ's market cap at $591M based on todays fake offer or just 39% more than Bison supposedly valued just FL Mobile. What a Bargain!
If you had any brains you could figure it out for yourself. At 60M shares outstanding $9.8/ share gives you a market cap of ~$590M. The two recent "minority" investments that can won't happen valued just two of NQ's business lines at ~$1B. This is the same company that made the minority "investments".
Todays fake investment offer comes in at something like 60% of the implied value of the fake minority "investments" in just two of NQ's business lines. Geez can' these guys even keep their numbers straight? If they're this desperate and stupid maybe MDP won't be able to look the other way.
It was in his S.A. article out a couple of days ago, and I've followed enough public companies to know there's always disclosure about what happened with the auditor confirming (denying) managements story in an attachment.. Once again I suggest cashing in what's left of your NQ stake and investing in reading lessons. I'd also suggest same basic logic lessons as well. Like when you lose 70% of your investment it's not the guy who TOLD YOU SO that's clueless.
From Prof. Gillis's article and experience following public companies NQ will have to officially explain what happened with PwC in a 6K and PwC will have to confirm or rebut NQ's story about what happened in the same 6K. We already know the talking points in the press release that there were no disagreements on matters of the audit was b.s. as they conflict their own story two weeks ago that PwC wanted to more information than they were willing to give. It Looks like they are waiting till the last minute to file this one and even the delusional longs know deep down why that is...Stay Tuned!
Another one who couldn't possibly be stupid enough to believe the #$%$ they're spewing. Besides the fact that D&T was nothing more than the lawyers assistant and PwC had no contractual relationship with the "investigation" and by definition had to be "independent", if D&T really did investigate everything and found no fraud they'd be the new auditor not some Podunk shop known for looking the other way (for a fee). Good God up until now you dopes were bragging about the how your two big 4's proved NQ was legit. Now that neither one will be blessing your 20-F what does it mean?
Short covering (cashing in) before the trade halt is propping this pos up. Another gift to longs on the way to zero. Are you going to take it this time?
It's only a matter of time before you get the delisting notice and trade halt. Short are cashing in so they don't get caught having to pay interest while this is halted. This would be a lot worse without short covering propping this thing up. This is the begining of the end, however you still have time to salvage something.