The way investors ought to be looking at this opportunity is like they would look at a Polynovo IPO. In fact this acquisition by Metabolic was for Xceed an alternative to spinning off PolyNovo with a new stock issue, and one that apparently offered some advantages.
It is certainly an opportunity for investors. Investors buying MBP shares at this point in time are really buying shares in PolyNovo Biomaterials. Metabolic is an basically empty office.
To the extent that investors allow themselves to spend time looking in the rear view mirror at the disaster behind them, the less they focus on the opportunities before them.
By the end of October, Metabolic Pharmaceuticals will be history in name and fact, and in its place will stand a new company, PolyNovo Biomaterials, with new managemant and a new board, and with an innovative, patent-protected technology already bought into by several major players on the world stage.
I have the feeling that this stock now appears to be in stasis is merely because of uncertainty as to whether the deal will actually consummate.
By mid-September that ought to be clear. For folks with some money to put down, this looks to me like a bet with very good potential returns.
As I said, think of it as PolyNovo's IPO.
MBP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
