K, the board cannot be removed as a majority of this board needs to remain or a QVT redemption event will occur. QVT made sure to have this written in. It makes you wonder why they NEEDED this board to stay in, despite the underperformance. Shouldn't they have wanted to remove the board a long time before now?
On this note, with a share price heading sub 20c, who can honestly see QVT converting their notes on May26 at 50.4c 42c etc (I can't even recall the prices of the numerous other tranches)? I'm sure TZ will be called to 'negotiate' yet again.
There has been a consistent trend of QVT having convertible notes repriced down and down? 6 months ago, I called it a dilutionary death spiral. I maintain that view. By May, we could well be looking at potentially over 200m shares on issue, and a share price of 15c or less. With QVT holding so much of the company then upon conversion (over 70%), a very cheap takeover then becomes a formality.
TZL Price at posting:
24.0¢ Sentiment: None Disclosure: Held
