The proxy was filed on Aug 8th, then it was filed again on Sept.9th with an additional paragraph added under the "Reasons for the Reverse Stock Split" heading on page 23. This includes the sentence:
"The increase in the available authorized but unissued shares of the Company’s
common stock will also allow the Company to satisfy conversions of all outstanding convertible securities of the Company. The Company has over
the last 12 months entered into securities purchase agreements with investors for the sale of its Series E and Series H Preferred Stock and warrants."
I'm sure the SEC required them to add this in. But then they just filed anther revised proxy yesterday which now includes 5 pages of security descriptions not there before. No doubt this was another revision the SEC asked them to include.
At the and of the day, if they do another huge RS, the existing shareholders will be wiped out. But I don't think the toxics will be able to convert enough shares to be paid in full either. The price will drop immediately- there will be no buyers and within a few months we will be back at a few cents. This would still not solve AMBS' money issues. Even if the senior noteholders loaned another $2-3 million dollars. It would be at the same terms and AMBS would go through it in 6 months. They won't be able to raise any more money, the sp will be back in the gutter, still on the OTC and they will still own millions to the toxics. GC needs to take a stand now and hopefully as Fred said, he is working another plan to fix things. The partner may not want to pay much upfront, but GC would be better off giving up majority ownership of ESS if he had to, to get enough cash to take Magna out. The other toxics I think would cooperate if Magna was gone. The problem is no investors can loan money at reasonable terms as long as there is a floorless convertible in place, so Dustin Johns for example would have I'm sure done a decent loan but had no choice to make it floorless to keep Magna from wiping him out. I would love to know what is owed to Magna now- anyone have an idea?
They paid 11-12 million for ESS last year so even if they could just get half that back from the partner and not take a milestone payment, it might be enough to pay Magna off and rework the rest of the notes. Long term, with positive data in the trial, it will be easy to obtain good financing later. My worse fear is GC decides to take whatever cash the partner is offering, do a huge R/S,, then take some more cash from the seniors-it could get him to positive data, but wipe out the shareholders in the process.
"The increase in the available authorized but unissued shares of the Company’s
common stock will also allow the Company to satisfy conversions of all outstanding convertible securities of the Company. The Company has over
the last 12 months entered into securities purchase agreements with investors for the sale of its Series E and Series H Preferred Stock and warrants."
I'm sure the SEC required them to add this in. But then they just filed anther revised proxy yesterday which now includes 5 pages of security descriptions not there before. No doubt this was another revision the SEC asked them to include.
At the and of the day, if they do another huge RS, the existing shareholders will be wiped out. But I don't think the toxics will be able to convert enough shares to be paid in full either. The price will drop immediately- there will be no buyers and within a few months we will be back at a few cents. This would still not solve AMBS' money issues. Even if the senior noteholders loaned another $2-3 million dollars. It would be at the same terms and AMBS would go through it in 6 months. They won't be able to raise any more money, the sp will be back in the gutter, still on the OTC and they will still own millions to the toxics. GC needs to take a stand now and hopefully as Fred said, he is working another plan to fix things. The partner may not want to pay much upfront, but GC would be better off giving up majority ownership of ESS if he had to, to get enough cash to take Magna out. The other toxics I think would cooperate if Magna was gone. The problem is no investors can loan money at reasonable terms as long as there is a floorless convertible in place, so Dustin Johns for example would have I'm sure done a decent loan but had no choice to make it floorless to keep Magna from wiping him out. I would love to know what is owed to Magna now- anyone have an idea?
They paid 11-12 million for ESS last year so even if they could just get half that back from the partner and not take a milestone payment, it might be enough to pay Magna off and rework the rest of the notes. Long term, with positive data in the trial, it will be easy to obtain good financing later. My worse fear is GC decides to take whatever cash the partner is offering, do a huge R/S,, then take some more cash from the seniors-it could get him to positive data, but wipe out the shareholders in the process.
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