They mainly seem to be concerned as an advisory source - though they also are involved in getting companies sold off.
It maybe that BIT is looking to some sort of TO as their primary objective. That does make sense given that they seem to have very limited research opportunities and a parlous financial situation.
Issue is that BIT is currently valued at around $14mil by the market. Any TO may be a low pitch offer that would be around 2 or 3 cents per share at best. That is not ideal for existing shareholders. However, the opportunities may be very limited.
No third party is likely to want to spend big on what BIT has to offer. $20mil for the existing IP and potential from the HIV trial results may seem to be a worthwhile gamble for a cashed up biotech but why would they want to pay more than that.
In fact, a few months down the track, BIT will have significant cash flow problems (probably does now anyway), and it could be snapped up for very little - if anyone can see value in the company. We could see a slow decline in the current SP if no positive news comes about. 1 cent SP values the company at less than $10mil and BIT may be in the position of having to accept a book value TO price.
BI's situation is quite dire at the moment. It basically has very little to offer another company.
BIT Price at posting:
1.5¢ Sentiment: Sell Disclosure: Not Held
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