Well the ResApp forum has turned into a latrine, hasn't it...?
I might check in next Tuesday.
In an effort to discuss something ridiculously RAP-related:
- The delays are bugging me a bit because I have the shareholder register as at 3-May. That's over a month now. In that month trade volume is around 20% of issued shares. Our letter (should one be required) will go to a lot of ex-holders.
- I don't believe ASIC will have seen the independent expert's report yet, because it is a draft. What ASIC sees is the final booklet. So if ASIC will object it will come later after the independent expert's report and the scheme booklet are finalised.
- I believe that the independent expert's draft opinion is that the takeover is not in the best interests of shareholders. If true, that means all the cards are in the air: the deed of implementation for the takeover will not have met its conditions precedent, and the directors will have been released from their obligation to support the deal.
- I believe that the delay is most likely because Pfizer and ResApp are locked in negotiation over the next move. Pfizer doesn't want to let go of the takeover effort but the directors won't agree to a price. ResApp doesn't want to sell the company but wants to keep Pfizer onside because of the benefits of friendship.
Back in April ResApp was in a position of serious weakness and basically had to accept what was being offered. In fact, what was being offered was pretty much in line for most takeover offers. But ResApp's bank account was empty, the share price was weak, it had no partnerships with any prospect of generating revenue capable of supporting research and development, and the company was unrecognised pretty well everywhere.
The situation now is very different. ResApp is in a position of considerably greater strength: the bank account is comfortably padded, the company has global recognition from all the media coverage of the takeover, and the product line has been validated by Pfizer's attention. I anticipate that the next agreement will be very different from the one announced on 11-Apr. Although it will be a fair bit of work, I hope I will be able to return the money contributed for the mailout campaign once the dust has settled.
