What I find interesting is when they (as Medical Therapies Ltd) acquired the MK assets from Cell Signals back in 2008/09, they used a mix of equity ...20m CDY shares (value - $1,000,000 or 5c per share) and the balance as a cash payment of $1,500,000....to be paid within 90 days of the settlement (of the patent transfer) date.
With the benefit of hindsight - (aka - not surprisingly), it appeared that cash was going to be a squeeze so after some haggling, CDY issued another 15 million shares in order to settle the $1,500,000 (or 10c per share) in February 2009. I was going to cut and paste the "interesting" quotes from both sides, but on reflection the whole announcement says it all for me. Here's the announcement...
This acquisition took 10 months to consummate. The share price at the time the first shares were issued was about $1.00 and when the second lot was announced the share price had rapidly fallen to about .28c so I guess Cell Signals thought they were getting a bargain in the equity stakes. But, 12 years after they effectively "donated" their assets to CDY, they are still hanging in on the top 20 list, the SP is still at around .10c and the intangible value of their midkine assets are still diminishing by the day. I note the latest book value of those intangible assets are about $1.7 million.
Given the way the CDY Board likes to operate (that is, acquire with equity with a cash promise - then renege on the cash and issue more equity instead) - then I would expect the Board to offer those shareholders who invested for the midkine deal an opportunity to be involved via a straight equity swap. They know how to do those deals and to coin Maria's words..."It would be a win-win situation for all parties"....wouldn't it????
CDY Price at posting:
10.5¢ Sentiment: Sell Disclosure: Held
(20min delay)