Although this is poorly researched report, it is still much better than the one so called "the Independent Expert Report" for the merger scheme.
The independent expert report said the IPO would take longer time than the proposed merger with Nabi. However, it did not give the estimated time for an IPO for Biota and the the time that the proposed merger with Nabi will take. If the merger goes through in November, it will be more than Six months since the announcement of the merger proposal, still not including the pre-announcement time for negociating the deal. Will a typical IPO on Nasdaq for an alreadly estabilished and listed company, Biota, take more than One year to complete?
The independent expert report said the cost of an IPO would be higher than the cost of the proposed merger deal. However, it did not give the estimated cost of the proposed merger deal. At the time of the announcement of the proposal, BTa was around 94 cents. now it is 67cents. if the VWAP is 69 cents, the discount will be 26.5%. This compared to 20% of the estimated average IPO cost of the total fund raised is significantly higher now.
IMO, the independent expert report was prepared very arbitrarily. It seems that they were paid to say that. another fishy thing is that The indpendent expert report was only prepared 3 months after the announcement of the proposal, according to the date used in the report.
just my thoguths.
BTA Price at posting:
66.5¢ Sentiment: Hold Disclosure: Held
