The recent conference call has revealed more cards
Post# of 30070
Posted On: 06/19/2015 11:04:33 AM
The recent conference call has revealed more cards about the plan.
While I again do not agree that much should be publicly said at this juncture when there are negotiations going on behind the curtains, IMHO it does possibly signal a glimpse of a watershed moment ahead.
It is important to understand the landscape with the summary of the key players below:
1. AMBS Board (who want to increase the AMBS stock price)
2. Potential partners/acquirers (who may want to depress the AMBS stock price for negotiation leverage)
3. Potential institutional investors (who are limited by certain price conditions or exchange to buy AMBS shares)
4. Financiers (e.g. Lincoln, Dominion etc)
5. Others (e.g. Hedge Funds etc)
It has been a tug of war between these key players. I think AMBS may be relent to make some compromised deals this time round, which I will explain later.
There are also key executions ahead:
1. IPO of AMBS
2. IPO (or acquisition/sale etc) of AMBS-DX
3. Partnership/Part-Sale of Lympro (or any DX asset)
4. Others (e.g. partnership of TX asset? trials, orphan, new data etc)
Surely AMBS Board will plan the executions in such chronological sequence so that each execution will, in their opinion, enhance the next execution in terms of higher AMBS valuation and more negotiation power.
Recalling Gerald's previously stated intent of no RS (indirectly referring to possibly high market valuation) and significant Lympro revenue, I may be alone to opine that there may actually have no change in overall plan execution. It is just that the execution sub-plans have to be reshuffled (e.g. RS has to come first now).
While it is publicly acknowledged that cheap diluted financings are not desired by AMBS Board, I think the urgency of calling for a RS now is to give it the best shot to finally boost the market valuation of AMBS dramatically (with possibly institutional investment) ahead of the next annual shareholder meeting, so that the total authorized shares can be increased further, as time is running out.
If AMBS market cap is $300m, $500m or even $1b by the time the annual shareholder meeting comes, I believe AMBS Board will have the moral support from the shareholders to vote for an increase in total authorized shares (e.g. to 20m or 25m shares) for the next leap. If AMBS valuation stays at $40m, AMBS Board will face an uphill task going forward in financing options.
Thus AMBS Board may now feel the priority of achieving high market cap is higher than getting a solid good fair deal in the interest of survivability and going for turnaround fortune. The expression of also looking at partnership at individual DX asset level in addition of the whole DX may be an indication of such change in strategy for AMBS.
Surely there will be forces wanting to disrupt AMBS plan (e.g. to uplist or IPO) as well as forces supporting AMBS in the months ahead. Thus either AMBS sinks or it will propel to new unprecedented heights.
Given that AMBS has RS both the outstanding and authorized shares proportionally, I still believe AMBS Board has good sincere intent to achieve shareholder value for everyone.
It will a critical period for AMBS for the next 3 months.
While I again do not agree that much should be publicly said at this juncture when there are negotiations going on behind the curtains, IMHO it does possibly signal a glimpse of a watershed moment ahead.
It is important to understand the landscape with the summary of the key players below:
1. AMBS Board (who want to increase the AMBS stock price)
2. Potential partners/acquirers (who may want to depress the AMBS stock price for negotiation leverage)
3. Potential institutional investors (who are limited by certain price conditions or exchange to buy AMBS shares)
4. Financiers (e.g. Lincoln, Dominion etc)
5. Others (e.g. Hedge Funds etc)
It has been a tug of war between these key players. I think AMBS may be relent to make some compromised deals this time round, which I will explain later.
There are also key executions ahead:
1. IPO of AMBS
2. IPO (or acquisition/sale etc) of AMBS-DX
3. Partnership/Part-Sale of Lympro (or any DX asset)
4. Others (e.g. partnership of TX asset? trials, orphan, new data etc)
Surely AMBS Board will plan the executions in such chronological sequence so that each execution will, in their opinion, enhance the next execution in terms of higher AMBS valuation and more negotiation power.
Recalling Gerald's previously stated intent of no RS (indirectly referring to possibly high market valuation) and significant Lympro revenue, I may be alone to opine that there may actually have no change in overall plan execution. It is just that the execution sub-plans have to be reshuffled (e.g. RS has to come first now).
While it is publicly acknowledged that cheap diluted financings are not desired by AMBS Board, I think the urgency of calling for a RS now is to give it the best shot to finally boost the market valuation of AMBS dramatically (with possibly institutional investment) ahead of the next annual shareholder meeting, so that the total authorized shares can be increased further, as time is running out.
If AMBS market cap is $300m, $500m or even $1b by the time the annual shareholder meeting comes, I believe AMBS Board will have the moral support from the shareholders to vote for an increase in total authorized shares (e.g. to 20m or 25m shares) for the next leap. If AMBS valuation stays at $40m, AMBS Board will face an uphill task going forward in financing options.
Thus AMBS Board may now feel the priority of achieving high market cap is higher than getting a solid good fair deal in the interest of survivability and going for turnaround fortune. The expression of also looking at partnership at individual DX asset level in addition of the whole DX may be an indication of such change in strategy for AMBS.
Surely there will be forces wanting to disrupt AMBS plan (e.g. to uplist or IPO) as well as forces supporting AMBS in the months ahead. Thus either AMBS sinks or it will propel to new unprecedented heights.
Given that AMBS has RS both the outstanding and authorized shares proportionally, I still believe AMBS Board has good sincere intent to achieve shareholder value for everyone.
It will a critical period for AMBS for the next 3 months.
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