i have thought for a long time that Phylogica probably would of been more suited and performed better as a private company, but of course that's only looking now in hindsight and in my own peronal view. The main reason any company lists is one for access to capital and secondly so seeds can more easily monetise some return. I'm not sure exactly how it would work from here though if they decided to revese it and delist and i'm really not sure if it would work to the benefit of shareholders - its either a lot of SH to buy out at a figure or a private company with very large poole of investors. As much as people pull in the lines of comparative companies being aquired for very large sums in the past despite no revenue etc it's also worth noting that many of those were private companies. While people say share price means very little etc i believe it actualy does, a listed company has a price tag tied to it represented by the share price - while of course that might not be the price they could get every share for it is still a representation of value. You wont see news releases coming out for example of a micro bio being aquired for a 2,700% premium by big pharma - which is representative of the previously touted target of $250M from todays $9M value. Private companies avoid that whole perceived value, rightly or wrongly associated with th company.
It probably could of been private, the last 3 moves for capital have all been out of public reach - the last time shareholders where given participant opporunity was mid 2010.
Who knows how it will play out
PYC Price at posting:
2.1¢ Sentiment: None Disclosure: Held
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