Wheely...
The Board of Directors of Decision Diagnostics Corp. reviewed the formal written offer received, and Mr. Berman took the opportunity to question the proposed M&A partner. Ultimately, the Board determined that while the offer is substantially above the current stock selling price, the offer is currently deficient in several respects.
Keith Berman, CEO of DECN, stated, "We have made it clear to our proposed partner that First, the company is in the process of concluding a raise of strategic capital and has received a subscription for $3.25 million which the company desires to close prior to its filing on August 14, 2017 of its 2Q 2017 Quarterly Report; and a second subscription for more than $2.5 million under the same terms."
Additionally, the Board also determined that it will not counter offer the proposed M&A partner until they receive a prepared valuation, which they will commission soon, or a revised offer. To that end, the company has already received a proposal for this valuation from a large accounting firm. The company has been informed that another offer may be made in the coming days by another type of M&A partner.
Mr. Berman concluded, "The offer received does not take into account any settlement expected from our litigation with the Lifescan division of Johnson + Johnson. Thus, we have communicated to the proposed M&A partner that the Board is neither accepting nor rejecting their current offer. While we intend to stay in regular contact with our proposed partner, the Board believes that prior to the conclusion of our valuation exercise, we anticipate receiving a revised offer."
Reading these important points, I understand that Mr. Berman is stating the offer is not reflective of the potential settlement. One can expect anything. The settlement potential can/should be factored into the offer if the offer is expected to be accepted PRIOR to the settlement. This would be like a wager placed in Vegas. You factor in the pros and cons and percentages and place your bet.
If DECN wins, the acquiring company most likely has gained a certain percentage beyond their accepted offer. If DECN loses, the selling company (DECN) has added to it's lowest expectations by the "bonus" the bidding company offered, expecting the win.
There is another HUGE factor here that can raise the price, and that is the $6 Million influx into the company by August 14.
"We have made it clear to our proposed partner that First, the company is in the process of concluding a raise of strategic capital and has received a subscription for $3.25 million which the company desires to close prior to its filing on August 14, 2017 of its 2Q 2017 Quarterly Report; and a second subscription for more than $2.5 million under the same terms."
Of course, this is my own opinion as an ordinary shareholder in the company DECN. I am not associated with the company in any way, shape, or form, and do not represent the views of the officers of the company (or at least any that I know of).
I am expressing my opinion,
just like you and the other shareholders out there.
The Board of Directors of Decision Diagnostics Corp. reviewed the formal written offer received, and Mr. Berman took the opportunity to question the proposed M&A partner. Ultimately, the Board determined that while the offer is substantially above the current stock selling price, the offer is currently deficient in several respects.
Keith Berman, CEO of DECN, stated, "We have made it clear to our proposed partner that First, the company is in the process of concluding a raise of strategic capital and has received a subscription for $3.25 million which the company desires to close prior to its filing on August 14, 2017 of its 2Q 2017 Quarterly Report; and a second subscription for more than $2.5 million under the same terms."
Additionally, the Board also determined that it will not counter offer the proposed M&A partner until they receive a prepared valuation, which they will commission soon, or a revised offer. To that end, the company has already received a proposal for this valuation from a large accounting firm. The company has been informed that another offer may be made in the coming days by another type of M&A partner.
Mr. Berman concluded, "The offer received does not take into account any settlement expected from our litigation with the Lifescan division of Johnson + Johnson. Thus, we have communicated to the proposed M&A partner that the Board is neither accepting nor rejecting their current offer. While we intend to stay in regular contact with our proposed partner, the Board believes that prior to the conclusion of our valuation exercise, we anticipate receiving a revised offer."
Reading these important points, I understand that Mr. Berman is stating the offer is not reflective of the potential settlement. One can expect anything. The settlement potential can/should be factored into the offer if the offer is expected to be accepted PRIOR to the settlement. This would be like a wager placed in Vegas. You factor in the pros and cons and percentages and place your bet.
If DECN wins, the acquiring company most likely has gained a certain percentage beyond their accepted offer. If DECN loses, the selling company (DECN) has added to it's lowest expectations by the "bonus" the bidding company offered, expecting the win.
There is another HUGE factor here that can raise the price, and that is the $6 Million influx into the company by August 14.
"We have made it clear to our proposed partner that First, the company is in the process of concluding a raise of strategic capital and has received a subscription for $3.25 million which the company desires to close prior to its filing on August 14, 2017 of its 2Q 2017 Quarterly Report; and a second subscription for more than $2.5 million under the same terms."
Of course, this is my own opinion as an ordinary shareholder in the company DECN. I am not associated with the company in any way, shape, or form, and do not represent the views of the officers of the company (or at least any that I know of).
I am expressing my opinion,
just like you and the other shareholders out there.
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