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Post by lennymnkd on Feb 20, 2017 12:43:58 GMT -5
Look I know Matts a finance guy , and I'm sure he would if he could ! But with that said , why would lineing up the financing for a stock buy back at this price .. not be considered to bring price above a dollar and with the shelf shares available at a higher price down the road for the debt and operations ?
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Post by liane on Feb 20, 2017 12:58:27 GMT -5
So then us lowly shareholders would be saddled with more debt and no certainty of sales to pay it off. Not a great idea IMO.
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Post by brotherm1 on Feb 20, 2017 13:41:34 GMT -5
Interesting. In theory it sounds great and all we need is cash to do it with.
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Post by matt on Feb 20, 2017 13:52:08 GMT -5
The company has both outstanding debt and a negative balance in shareholder equity so any cash is there to secure the interests of the creditors. The creditors would undoubtedly argue that any buyback is a fraudulent conveyance because it transfers cash to select shareholders and further increases the risk of financial loss to the creditors. Given the condition of the balance sheet, the creditors would have a slam dunk argument in the Chancery Court because as a matter of Delaware law the company meets the legal test for insolvency.
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Post by cedafuntennis on Feb 20, 2017 14:54:29 GMT -5
Look I know Matts a finance guy , and I'm sure he would if he could ! But with that said , why would lineing up the financing for a stock buy back at this price .. not be considered to bring price above a dollar and with the shelf shares available at a higher price down the road for the debt and operations ? If Matt were such a great finance guy he would have sold shares at $10 to store cash reserves for rainy days. It's now pouring and he was caught in his underwear in the rain... I lost 99% of my confidence is his real abilities long time ago but I'm stuck in this stock at this point as they do have a great product.
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Post by lennymnkd on Feb 20, 2017 16:32:35 GMT -5
Brother , people and operations seem to get financing for the most ridiculous and risky business situations.. a monomer insulin that mimics the human pancreas FDA APPROVED which just happens to be inhaled.. and will shortly be ubiquitous with CGM .. shouldn't be that big of a task to solicit some sort of financing .. but with that said , Matts post to me is what makes sense as to why not .
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Post by sayhey24 on Feb 20, 2017 20:18:52 GMT -5
Look I know Matts a finance guy , and I'm sure he would if he could ! But with that said , why would lineing up the financing for a stock buy back at this price .. not be considered to bring price above a dollar and with the shelf shares available at a higher price down the road for the debt and operations ? I don't think Matt thinks he really has a problem with the current stock price. He has said more than once, it will take care of itself. If you believe that then the current R/S proxy is an insurance policy, just in case things don't happen in Matt's time frame. In Matt's mind I think he thinks he is going to sell product one way or another. I think selling product is a brilliant financing strategy and would be a welcome change.
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Buy back
Feb 20, 2017 23:53:46 GMT -5
via mobile
Post by cedafuntennis on Feb 20, 2017 23:53:46 GMT -5
Look I know Matts a finance guy , and I'm sure he would if he could ! But with that said , why would lineing up the financing for a stock buy back at this price .. not be considered to bring price above a dollar and with the shelf shares available at a higher price down the road for the debt and operations ? I don't think Matt thinks he really has a problem with the current stock price. He has said more than once, it will take care of itself. If you believe that then the current R/S proxy is an insurance policy, just in case things don't happen in Matt's time frame. In Matt's mind I think he thinks he is going to sell product one way or another. I think selling product is a brilliant financing strategy and would be a welcome change. Right... Matt said many other things too like embarrassment of riches... Also he repeated the BS about the PS taking care of itself when the price was, oh, above $7 pre reverse split... It certainly took good care of itself when management failed to raise insurance cash at those prices...
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