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MattAxel

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06/03/17

17:36

Post #: 23134019
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Originally posted by tralfaz ↑

Matt,

Convertible notes are the most common form of investment on the OTC, not direct equity placements. The problem is a chicken and egg scenario. If the stock stays below the $35MM market cap where it currently is right now, the stock will in all likelihood get delisted and move to the OTC market. The company can do an equity offering, they can't do a registered offering at this point. Since an equity offering forces at least a 6 month hold on the buyer the risk level goes up significantly for the investor. The compensation for this risk would be a big discount to market. If the company does a deal at a discount and tries to raise enough funds to last more than two quarters you are looking at a huge dilution. One that would violate ASX rules. They are stuck. Nobody is going to give them debt unless they are in first position. Orbimed and Amgen are likely not going to subordinate to a new investor. This management team painted themselves into a corner and without a miracle or another major customer coming onboard they'll likely be forced in BK. (last part is my opinion) Its been a year and outside of cutting some people they haven't done anything that would make me think they have advanced any programs or have any hope of advancing these programs forward.

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Yes most convertible bonds are traded on the secondary OTC market due to their diversity (makes it difficult to having a consistent pricing methodology across all instruments), but this is on the OTCQX (most large multinationals use this to get access to US)

Pinks on the other hand are a different story

UNS Price at posting: 3.8¢ Sentiment: Sell Disclosure: Not Held
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