20/02/2008 Biota CEO Peter Cook said "Given our sound position we have taken the opportunity to use some of our cash in an on-market share buy-back to benefit of all shareholders".
I remember it well, it started so full of hope. We would all benefit.
Well those shareholders that sold benefited, they were no longer shareholders, but they did benefit.
Peter Cook must have been embarrassed when the board of directors had nothing else to give him but a heap of used cash-back shares, so he did benefit.
and through no fault of their own, the brokers running the buy-back scheme benefited too.
But now I'm confused.
Did my shares go up in value because some made it to the buy-back incinerator?
I didn't want to sell my shares and leave Biota,.. but I don't think the shares went up anyway.
So really Peter Cook might as well have put the Biota money in the incinerator for all the good it did me.
I wonder if maybe the Biota "generous give away" money and Biota's financial losses could have worked together.
I think I read that every year Biota has a financial loss, Biota technically isn't in a sound position, and because of that, the board members aren't allowed to take the opportunity to use some of shareholder's cash in a dividend to benefit all shareholders. Fancy that.
I'm sure Peter's plan will work out next time. Maybe he could forget the cash-backs, paid off the debt, and give dividends instead. You think?
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20/02/2008 Biota CEO Peter Cook said "Given our sound position...
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