I don't know about anyone who knows, but I think,
Post# of 30028
1. Reg A+ and the JOBS act are new, with even newer expansions, amendments etc. In addition, in the vast world of fundraising, certain means go through cycles where they become popular, which is key to attracting the necessary expertise and trust in the process. Further, the macro economic situation is supportive. 2016 was awful generally.
2. For Elto, a clear path to approval and the metrics of the competing product became clear only in late 2017. Clearly the market is signaling that we have a chance at getting the product to market and that the product could be competitive or superior. The ball didn't really get rolling until then. No coincidence that this cockamamy plan was agreed to in principle mear months later.
3. I believe we tried to do this exact thing in 2015 when it got all muffed up. I cannot wait to find out what happened behind the scenes.
4. Product wise I'm not here for Elto, or ESS, though I wish them well. But ESS lacks elegance and a major market. It's a mix-use zoned commercial building. Elto is the $200,000 suburban house of biotech. Standard, simple story worth taking a shot at, and you know what if we can throw in some granite counter tops and a pool later, we'll be sitting pretty.
5. You as an investor have X shares in AMBS. AMBS has 3ish subs. For simplicity's sake, you do not benefit if you sell 1/3 of your shares for 1/3 of the present value of the shares. But if you as a legacy holder recieve a distibution, a spin off, a dividend such that you're in effect only giving up 1/6 of your shares at 1/3 of the value, you have doubled your money. I am not an 8 ball. I don't know exactly what the future holds, but spinoffs happen all the time. Reg A+ stories exist and are researchable. Company's like Elto that go public at public valuations far in excess of the original private investments, which is essentially what you have, happen all the time. Early private investors always get rich at the IPO. We just have to do the damn thing.
6. Further multiplying the value to you will be that the success of the sub, not creates a better negotiating position for the wammy bar- MANF. Which by the way is being de-risked for us, free of charge, by Herantis and universities around the world.
7. All of this you must weigh against the probability that we cannot buy back any or all of the New Prefered conversions scheduled to start at the end of the year, due to incompetence, trickery, bad luck, a bad market, everything on the boiler plate etc.