Does anyone know if the following scenario is poss
Post# of 30066
Posted On: 10/27/2015 5:15:52 PM
Does anyone know if the following scenario is possible? I'm not familiar with SEC regulations, so please let me know if it's not.
Let's say a potential partner approached AMBS and said we're willing to give you $50 million upfront for one of the DX assets (e.g. MSPrecise) and 1-2% royalty percentage on sales in exchange for keeping 98-99% of sales and 20 million AMBS shares. So in the current market, let's say AMBS provides 20 million shares at a price of $0.50/share ($10M).
When the deal is announced by AMBS, the market interprets that AMBS' valuation is much higher than $0.50/share on MSPrecise alone.
I'm wondering if AMBS went with so-called "toxic financiers" instead of LPC because toxic guys are known to convert and sell. The pps would drop as a result, but it would make the deal more attractive to the strategic partner.
Thoughts?
Let's say a potential partner approached AMBS and said we're willing to give you $50 million upfront for one of the DX assets (e.g. MSPrecise) and 1-2% royalty percentage on sales in exchange for keeping 98-99% of sales and 20 million AMBS shares. So in the current market, let's say AMBS provides 20 million shares at a price of $0.50/share ($10M).
When the deal is announced by AMBS, the market interprets that AMBS' valuation is much higher than $0.50/share on MSPrecise alone.
I'm wondering if AMBS went with so-called "toxic financiers" instead of LPC because toxic guys are known to convert and sell. The pps would drop as a result, but it would make the deal more attractive to the strategic partner.
Thoughts?
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