I think it's pretty clear what is actually going o
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Posted On: 06/07/2018 11:36:40 AM
I think it's pretty clear what is actually going on from the pr. They are negotiating with a partner for Elto- they have already made the decision that is the way they want to go and are using the plan to do an IPO to create leverage in their negotiations.
I've posted numerous times already that I have never thought that they were actually going to do the IPO's that they have discussed for the subs, but they needed to have a clear plan to present to the market in order to have leverage with partners and to get the toxics to agree to the tender exchange. No doubt there have been partners before interested in some of the assets, but AMBS has had zero leverage to negotiate anything until now. They were on the verge of going out of business, so any potential partner wouldn't offer them anything. So a lot of the talk about the JOBS Act I still believe is for show only. Even now in today's pr, they state they will make a decision this summer- that is bs. They already made the decision- they are doing a partnership, but they are trying to get more money. They need to show this partner if they don't get what they want, they will move on and do the IPO. Doing an IPO would be expensive, complicated- they would essentially be starting a whole new company- they can't even run this company.
There's no way to know if the partner for Elto is public or private- hopefully public. They need about $15 million for the trial, so I would assume the partner would pay for the trial and hopefully pay a small upfront fee to AMBS- maybe a couple million or so. They probably don't have a lot of cash, so that is why they would be giving AMBS a lot of stock instead.
Obviously Dominion is still selling shares, so it looks like we are stuck at 5 cents until they are taken out. I expect we will get a pr soon announcing the settlement of the Accounts Payable. There are still a lot of unknowns - how they will structure the settlements and assign them to the various subs, but looks like they are executing a clearly defined plan now.
I've posted numerous times already that I have never thought that they were actually going to do the IPO's that they have discussed for the subs, but they needed to have a clear plan to present to the market in order to have leverage with partners and to get the toxics to agree to the tender exchange. No doubt there have been partners before interested in some of the assets, but AMBS has had zero leverage to negotiate anything until now. They were on the verge of going out of business, so any potential partner wouldn't offer them anything. So a lot of the talk about the JOBS Act I still believe is for show only. Even now in today's pr, they state they will make a decision this summer- that is bs. They already made the decision- they are doing a partnership, but they are trying to get more money. They need to show this partner if they don't get what they want, they will move on and do the IPO. Doing an IPO would be expensive, complicated- they would essentially be starting a whole new company- they can't even run this company.
There's no way to know if the partner for Elto is public or private- hopefully public. They need about $15 million for the trial, so I would assume the partner would pay for the trial and hopefully pay a small upfront fee to AMBS- maybe a couple million or so. They probably don't have a lot of cash, so that is why they would be giving AMBS a lot of stock instead.
Obviously Dominion is still selling shares, so it looks like we are stuck at 5 cents until they are taken out. I expect we will get a pr soon announcing the settlement of the Accounts Payable. There are still a lot of unknowns - how they will structure the settlements and assign them to the various subs, but looks like they are executing a clearly defined plan now.
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