In this Part 1, I discuss the following headings -
The lack of timely disclosure of the first-in-man test of the neuromodulation therapy was unfortunate
The purchase of the cash consuming Aquadex business and successive Preference Stock offers are not solving ongoing liquidity issues - but are contributing to ever greater dilution of the Common Stock shareholders;
The target for preferred stock holders seeking control of Sunshine Heart has to be the neuromodulation therapy - a huge prize, potentially in the $100 millions to $billions valuation range;
The Preferred Stock holders have obtained a seeming stranglehold on the assets of the company. But, their Achilles' heel is exposed, and apparently already under attack;
Joint venture funding would avoid the necessity for further highly dilutive Convertible Preferred Stock offers.
Summary and conclusions - How and why opposing interests, and rent-seekers, could drive the share price much higher
SHC Price at posting:
2.5¢ Sentiment: None Disclosure: Not Held