So, all is in readiness for a 70 million capital raise.
It's pretty clear nothing will happen on the market until this is clarified. The SP has dropped to $4, and will sit there until the details are announced.
We'll see how sweet a deal is offered in return for liquidity. But, as I've mentioned, there are few champions left for Australian shareholders on this Board.
I presume the capital raising is imminent only if a deal to add to the pipeline is imminent? Otherwise, why the rush? Lani Phase 2 completion is not very far away (fingers and toes crossed).
ReplyDeleteMy guess is that they will want to keep the institutions happy with the prospect of early SP gains after the capital raising with news of:
ReplyDelete1. Pipeline addition/purchase
2. LANI prevention approval in Japan
3. Royalty/licence deal done with DS for Inavir in ROW
4. LANI phase 2 results.
The institutions will want their shares cheap.
You could argue that for existing shareholders the time to raise capital is after steps 2,3,and 4 and not before. Let liquidity happen then.
Should poor suffering aussie investors be against voting item 4?
ReplyDeleteFaruqi & Faruqi, LLP Launches An Investigation Against Biota Pharmaceuticals, Inc. (BOTA) For Potential Breaches Of Fiduciary Duties By Its Board Of Directors
Read more: http://www.nasdaq.com/press-release/faruqi--faruqi-llp-launches-an-investigation-against-biota-pharmaceuticals-inc-bota-for-potential-breaches-of-fiduciary-duties-by-its-board-of-directors-20131004-00362#ixzz2ihc2a6l5
Specifically, in the Proxy Statement filed by the Company with the Securities and Exchange Commission on October 1, 2013, the Board of Directors recommends that Biota's shareholders vote to approve an amendment to the Company's 2007 Omnibus Equity and Incentive Plan to increase the number of shares available for issuance thereunder from 1,157,978 to 4,157,978. The issuance of the additional shares could have a substantial dilutive effect on the shares of Biota common stock.
I'll vote against it, for what its worth.
ReplyDeleteThat sort of significant increase in executive shares is either quite greedy, or it is another signal that lots more BOTA shares will be issued in the near future (in which case it will be less dilutive than it currently seems to be).