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Post by Wallace907 on Nov 10, 2015 5:33:47 GMT
I have felt pretty strongly that the company would need a partner in order to ENTER PII/III, but this doesn't seem like a calculated or strategic move whatsoever. Its like they just realized that they couldn't "go it alone" and have all but given up. This pretty much goes against everything the company worked toward. I wonder what will be presented at AAO on Nov 14-17th.
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Post by 06Hokie on Nov 10, 2015 5:42:51 GMT
Interesting how the PR and presentation that fan linked don't mention MSC.
Also - do they not have the stones to talk to shareholders about the deal? They have to announce after the call? (Or will they not be allowed to talk about it?) Such a group of lames.
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Post by vzveteran on Nov 10, 2015 5:57:21 GMT
Blue horseshoe likes Ocata. Not a bad payday for the C level guys huh?
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Post by rabin1 on Nov 10, 2015 5:57:42 GMT
There has to be a bigger issue at play here that we are not aware of.. i.e. licensure
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Post by Wallace907 on Nov 10, 2015 6:06:05 GMT
Blue horseshoe likes Ocata. Not a bad payday for the C level guys huh? not so sure. many of the new guys were signed pretty close to 8.5 sp, right? I think the bulk of their options are closer to 8.5 than where we are sitting today. After taxes, its probably not a great payday either. Jooste, Eddy, Teddy, and Paul come to mind. Am I wrong?
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Post by chuck on Nov 10, 2015 6:16:10 GMT
Cash out just before phase 2 for $8.50 a share? That's ridiculous. Why? Years ago when they could barely keep the lights on it would have understandable but now it just doesn't make sense to me; they aren't desperate for cash or anything and (as far as we know anyway) things are moving forward. I just don't get why the company would think this is a good idea at this time when real value creation seems right around the corner.
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Post by 06Hokie on Nov 10, 2015 6:30:58 GMT
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Post by goldencoin9999 on Nov 10, 2015 6:34:12 GMT
Nothing these guys done create any value for shareholders. BOD must be asleep. A whole bunch of high paid guys doing worse than Rabin. They have given up, in over their heads. Well, I guess I can close this dark chapter in my life. Thanks for pain and suffering for the last 8 years. What goes round comes around. It has been pleasure experience with this group. Thank you and wish you best of luck!
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Post by vzveteran on Nov 10, 2015 6:36:32 GMT
Blue horseshoe likes Ocata. Not a bad payday for the C level guys huh? not so sure. many of the new guys were signed pretty close to 8.5 sp, right? I think the bulk of their options are closer to 8.5 than where we are sitting today. After taxes, its probably not a great payday either. Jooste, Eddy, Teddy, and Paul come to mind. Am I wrong? Option resets worth a few bucks. Would love for this to be a hail Mary pass with cash running out next year. Maybe Pw is throwing crap at the wall and see what sticks.
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Post by JHam on Nov 10, 2015 6:42:45 GMT
All I can say is...HOLY SH*T!
It is truly an end of an era. This is great news for those who opened positions in the last few months. However, I have a feeling the majority or retail holders are those who have averages far above $8.50, so this buyout will likely be very disappointing for many.
Good luck to all!
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Post by JHam on Nov 10, 2015 7:39:53 GMT
Congrats to all holding shares. I know its not the grandslam many were hoping for, but a buyout offer for $8.50 isn't a bad deal... especially with shares trading in the low $4s. Last thought...
It'd be interesting to hear OCAT management justify this sales price. It appears they didn't think OCAT could get to $8.50 per share "next summer" when they announce interim Dry AMD results. Or, perhaps management knew that more dilution was going to be needed, and with the recent announced delays, they knew that interim results wouldn't be out until late 2016 at the earliest... so an offer for $8.50 given where the pps was likely headed over the next 1.5 years was seen as a good deal.
But still, why sell so cheap? Remember the proxy last year where they added the term to be able to reset their options to whatever price they wanted to? IMO, that term that shareholders approved is an enabling element of this deal, as management can reset all their options to let's say $3 or $4, and then they can double their money by selling the entire company. If those options remained at the original higher strike prices, selling the entire company for $8.50 a share wouldn't make much sense for the OCAT C level execs. (PS - Remember that some of us argued against giving management that type of power, while some clueless people elsewhere argued for giving management whatever they asked for.)
Yup.
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Post by happyjawa on Nov 10, 2015 9:47:59 GMT
Golly. I'm speechless.
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Post by dayanand33 on Nov 10, 2015 12:30:34 GMT
ALPMY has a market cap of $32 Billion dollars. I don't see much value in investing in ALPMY because the gains are limited owing to the huge market cap. Alas years of following this stock ended in a fizz.
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Post by JHam on Nov 10, 2015 13:02:33 GMT
ALPMY has a market cap of $32 Billion dollars. I don't see much value in investing in ALPMY because the gains are limited owing to the huge market cap. Alas years of following this stock ended in a fizz. Totally agree. We'll probably never know, but I would not be surprised if this buyout happened because of issues with their IP and stem lines that has been talked about a lot here. BTX moving full steam ahead despite OCAT's patents and OCAT licensing the iPS lines were major red flags for me. They probably realized they were never going to get through P2 and even if they did it didn't matter anyway and said screw it.
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sunny
Junior Member
Posts: 57
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Post by sunny on Nov 10, 2015 13:24:19 GMT
IMO this is the commencement of a bidding war.
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Post by jckrdu on Nov 10, 2015 13:31:05 GMT
IMO this is the commencement of a bidding war. That's certainly possible. I'm not sure how likely it is, but its certainly possible.
Any number of pharmas that want to own or protect their interests in the eye space could easily offer 50% more ($600 million) just as a risk mitigation strategy. I wouldn't hold my breadth waiting for higher bids, but it wouldn't surprise me to see a better offer surface over the next 30-45 days.
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Post by JHam on Nov 10, 2015 13:33:30 GMT
Elsewhere people are raging that the company has a moral obligation to long term shareholders to do this and that and that it isn't fair. I know a lot of people are very angry right now, but it just doesn't work that way. Management doesn't care about the little guy. Not just OCAT, but all of these companies. It's not Paul Wotten's fault people chose to invest in the company. This is why it is important to always discuss the details, listen to contrarian views, and not get caught up in the "pie in the sky" way of thinking.
Another complaint is that at under $400M the company was sold too cheap. Thinking that it should be valued at much more shows how delusional some of the investor base is imo. There is a reason why the offering was undersubscribed earlier this year. PW agreed to what he thought was good value for the company. For a company has top-line data on a few dozen patients, it is hard to disagree.
It looks like people are going to try go the lawsuit route. I'll just say good luck with that. It's a waste of time and energy imo as, for several reasons, it will amount to nothing.
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Post by selluwud on Nov 10, 2015 13:34:54 GMT
On the up side, I will not lose any money and will make a small premium. On the down side, I have spent the last 8 years spending entirely too much mental energy and anguish all for naught. Buying on the dips recently got my average down below 8.00 and saved my arse. Nothing ventured, nothing gained. I will hold on at least to see if some unknown factors push the pps up beyond the offer price, but otherwise I will stay the course until the dust settles as 8.50 is pretty much guaranteed contingent upon approval.
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Post by JHam on Nov 10, 2015 13:39:48 GMT
IMO this is the commencement of a bidding war. OK so say there is a "bidding war". Do you think the bids will be drastically different than what is being offered now? Do you think PW went with Astellas because it was the lowest he thought he could get or the highest? It is more logical to assume, imo, that PW knows what other big pharmas were willing to bid for OCAT (if anything) and went with Astellas because they gave the best price.
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Post by JHam on Nov 10, 2015 13:42:40 GMT
On the up side, I will not lose any money and will make a small premium. On the down side, I have spent the last 8 years spending entirely too much mental energy and anguish all for naught. Buying on the dips recently got my average down below 8.00 and saved my arse. Nothing ventured, nothing gained. I will hold on at least to see if some unknown factors push the pps up beyond the offer price, but otherwise I will stay the course until the dust settles as 8.50 is pretty much guaranteed contingent upon approval. All things considered, I'd say you faired better than most selluwud.
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