what is the future of biota????, page-5

I believe that most of those trades are done between related parties (or separate accounts of one party). The current low share price also reflects the weak market sentiment at the moment. People are more reluctant to take risks and hence prefer to put their fund aside.


With the current deal, 26% of the new Biota company is equivalent to about [(182m /74%)*26%] = 64m (65m according to the latest company presentation PPT) current Biota shares. That is, Biota is to issue around 64m new shares to Nabi shareholders for U$54m cash. The AUD/USD exchange rate is at 1.025 now. So, the average price for the new shares to be issued is about [($54m/1.025)/64m] = 82cents AUD.

So, if the merger deal goes through smoothly at the present terms and rates, the new issue price is 82cents AUD, which is much higher than 70cents Biota share price now.

Being reluctant to provide interim updates on some key issues is the tipcal practice of Biota management. If you want to stay with Biota, you have to get used to this. We just pray that the Board is working in the best interest of Biota shareholders. The estimated time for dispatching the scheme booklet to shareholders is in July. The time can hardly be put off anymore unless the whole merger deal timeline is changed.

By the way, the selection of the new CEO after PC retires is the key to the future of the new Biota.


Just my thoughts.