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TOPIC: RO 77% oversubscription

RO 77% oversubscription 24 Nov 2017 08:51 #10627

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Great news for Tiago Girao. Company is not going under, but we are facing 100% dilution now.

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RO 77% oversubscription 24 Nov 2017 09:15 #10628

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Skip this round myself Franshei but beginning to believe it might have been a mistake with the price holding up. I still believe that Hedge is right in that we are heading for another RS unless they can get a partner for the cancer drug.
Does the 77% oversubcription mean that they raised around 17.5 mil instead of the ten they were looking for? If so, that’s pretty good. I believe some on this board were thinking they would get around 5 mil out of it.
Dilution, has hard as it is to swallow, is a necessary evil until they get this thing going.

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RO 77% oversubscription 24 Nov 2017 09:57 #10629

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Proration of R.O. will keep capital raise at $10,000,000. Good job by Tiago in difficult situation. I wonder how many units were sold to professional arbitrageurs like Sabby and how many bought by insiders like Marc Hedrick? Still a long, looooooong way to sustainability and if they can't get a cancer partner (which I view as a long shot) I don't see a Phase III scleroderma trial as viable due to lack of resources. Approval based on Phase II is a pipedream, IMHO.
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RO 77% oversubscription 24 Nov 2017 10:06 #10630

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b7

I think the company should not agree to the conversion change from 48 cents to 33 cents, resulting in more shares to be issued. Actually, only 10,000 RO units (representing 10,000 original commons) is now able to capture almost 50% of the new outstanding shares of the company. With the oversubscription, the company may still go through the RO with 48 cents conversion. As Rodney has said this is bad.

Regarding Reverse Split, we may be able to avoid it with real news in the coming months (as Tiago Girao is trying to imply). ATI 0918 is indeed low risk project, but the progress has been slowed down with the tight cash situation. The company needs at least 6 month stability to bring in a real partnership in time. Yet the test lots are yet to be manufactured. The pilot plant in San Antonio has just been validated and manufacturing scaling up in progress. Comparative information based on Hedrick's various presentations suggests that there is a 3 month delay in the AZA project.

The company is trying to convince the FDA to allow PMA filing with a promise of doing phase 4 trials (meeting has been requested). Yet, based on recent VCEL meeting with the FDA, the agency may very likely request a phase 3 trial in diffuse cutaneous scleroderma. (In this case, we may not know if STAR 2 is a success or failure for a least another years or even 2 years from now, depending on the restart date and availability of funding.) The best hope is a successful Sclerodec II and an early EU filing. I hope Hedrick has some early indication from France that this trial is not off track as it stands today. Otherwise, we are all in big, big trouble. The lesson with STAR is very painful for the company and for all the stockholders.

Cytori KK is a success, but the revenue is so small. The best hope for increased revenue is really the liposomal projects.

I know many people hope that CYTX can survive and grow (hopefully without another reverse split), but I think a good buyout will solve a lot of problems - finance, leadership, expansion in pipeline, etc.
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RO 77% oversubscription 26 Nov 2017 13:16 #10633

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Franshei -

With the latest filing the prices for common and warrants were fixed- they cannot be changed. Still the participation surprised me positively, although it is obvious that the Sabby´s et al all disposed their holdings to go back to their 9,99% maximum ownership through this RO (retainin the free warrants of course). There will be plenty of material available after the distribution of the stock as usual and I do not think at all, Girao should be commended for that. The RO was another ultimate sign of weakness and another boon for the institutions that dragged the PPS down.

I know many people hope that CYTX can survive and grow (hopefully without another reverse split), but I think a good buyout will solve a lot of problems - finance, leadership, expansion in pipeline, etc.


Question to you- if a buy-out occurs, what do you think you will get for your shares- seriously??????

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

RO 77% oversubscription 26 Nov 2017 18:36 #10634

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FAS

As Saad had said many times, CYTX is always in need of cash to keep the engine running. Over the past 3 years after Hedrick had become CEO, the company has to raise cash almost once every six months and dilute the shares again and again. The leadership appears to be clueless in what their are doing, with failure after failure in running the clinicals by themselves. What is next in the future of the company is anyone's guess. We had one reverse split. Is the company repeating the the same direction as before? What can be done differently?

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RO 77% oversubscription 26 Nov 2017 20:49 #10635

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Fas
The advantage for a buyout today was that it puts the tech in more capable hands and thus hopefully gets it to market for patients. Putting Cytori management on the street the only advantage for existing shareholders.

Franshei
Biannual funding was the rule when Calhoun ran the show as well.

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RO 77% oversubscription 27 Nov 2017 06:47 #10637

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franshei wrote: FAS

As Saad had said many times, CYTX is always in need of cash to keep the engine running. Over the past 3 years after Hedrick had become CEO, the company has to raise cash almost once every six months and dilute the shares again and again. The leadership appears to be clueless in what their are doing, with failure after failure in running the clinicals by themselves. What is next in the future of the company is anyone's guess. We had one reverse split. Is the company repeating the the same direction as before? What can be done differently?


Franshei- If there is anybody who is more aware and knowledgeable of the dilution than me I would be surprised. I owned MacroPore/Cytori also in 2005 when there were less than 14 Mio shares OS.( I owned 6-7% of the Company that time with friends) Now we have > 1.1 Bio shares and even Calhoun did not mange a 10 fold dilution I believe Actually, I have it all written down in an article " The art of Calhouning" which Hedge certainly will remember. The Art of Hedricking was far worse- about 85-90 fold or something and that disaster he and Girao are responsible for, despite their big bonuses.

Nonetheless- with 15 years of development, I would like to see patients benefit from the technology under present management, who hopefully have learned something - new management would mean a virtual total write-off of money invested- it is that simple.

And it should also be clear, that I participated in the RO to keep my little stake in Cytori now at the same percentage ownership. And this time that money should last 9-10 months with the present burn and if money is needed again- I will have to make that choice all over again and will use my judgement depending on developments.

I did spend time on analysing other SC companies like MSB and others this week-end. Most are further away from cash revenues than Cytori I believe and will have bigger cash needs.

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:
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