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TOPIC: What is the advantage?

What is the advantage? 13 Nov 2017 09:03 #10489

  • b767cpt
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Need a little help in understanding this RO. My understanding of it is that one puts up a 1,000 for the rights of one share of common and 1,250 warrants @ 0.48 for 1 to 1 common (non voting) to exercise up to 30 months.
So if one feels like dumping more good money into this and hanging around, what is the advantage when one could take the present 1,000 and purchase 2,500 shares at today’s market?

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What is the advantage? 13 Nov 2017 11:03 #10492

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B-7, in addition to the warrants, the $1,000 buys you Preferred Stock convertible into common stock at .40 (2,500 common).
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What is the advantage? 13 Nov 2017 14:06 #10494

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B7- In addition to the right of the preferred share B to convert into 2500 common, you should know that this preferred share cannot be traded (which I think for LT investors is OK and prevents nasty stuff like selling with the warrants as hedge), but also that the price can be changed before November 21 - either up or down.

This complicated procedure is simply, because the maximum shares OS authorized is limited to 75 MIO and we are close at that number- OS presently 35 Mio+25 at 40 cents +12,5 Mio CYTXS warrants+ 7+ Mio CYTXW warrants. First a shareholders meeting must be held to approve an increase of that 75 Mio before a conversion green light can be given.

Mind you- the (relative) price stability of the stock is rather good at this point - I have been expecting more (shorting) pressure- but than again- there are 8 more days to come.

Time will tell as usual.
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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:

What is the advantage? 13 Nov 2017 14:55 #10497

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SP will have trouble staying over .40 until the RO is completed - why buy in the open mkt. at .40 when you can get it commission free with the RO plus the warrants at .48!

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What is the advantage? 13 Nov 2017 22:15 #10498

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b7
There is certainly lots to consider.
#1 being imho, do you need to own this and own it now ?
Many fish in the sea.
However, the pricing question is valid !
The full RO requires a $1600 investment. $1000 for the preferred and $600 to exercise the warrants.
Average cost about .4267 a share compared to todays close of .3906 which could easily go even lower.
Lets say for argument sake you invested the $1600 and were able to get .37 a share. Even after a discount broker commission of say $10 your talking a extra 546-547 shares.
Risk:
1. If you own the preferred your stuck until a conversion is approved.
2. They may not raise the full $10 million, then what, although while I believe the deal will somehow get done, we don't know for sure. Oxford themselves allowed only 5 million in new money which now seems the RO is the only source by year end.
3. Tax loss season is upon us
4. Reverse split issue again raises its head in January I believe.
5. How does the market value the stock once deal is done...one can make a argument either way but more shares are coming.

I dont think this post should be taken to provide a answer for you but just some food for thought off the top of my head !
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What is the advantage? 14 Nov 2017 04:56 #10499

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HF's description is not quite accurate in that the warrants are expected to be listed and traded - as such, there will be no need to exercise for $600 as he indicated - they can simply be sold and effectively reduce the basis of the common acquired upon conversion. Also, the conversion of the preferred may be dependent on increased share approval by the common s/h's which will be done probably in the next proxy or before, and s/b not be an issue imo.

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What is the advantage? 14 Nov 2017 06:21 #10500

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True...they are applying to have the warrants listed as CYTXS
Is that your plan RS ? Sell off the warrants to lower your basis ?
I wonder if there is a group licking their chops that they will again be "hedged" ? It certainly makes January seem much more interesting. Last time NASDAQ denied a extension and the reverse split was born.

How many share do you think the board will be asking for authorization next year ?
I am thinking 150 million shares as things stand right now. Of course we don't know how the R/S factor will play out yet.

So again, risk, risk, risk.
Nothing wrong with risk as long as you know of its existence and play the game accordingly !

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What is the advantage? 14 Nov 2017 07:06 #10504

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myownhedgefund wrote: How many share do you think the board will be asking for authorization next year ?
I am thinking 150 million shares as things stand right now. Of course we don't know how the R/S factor will play out yet.


That sounds a bit low, but could be- at present we are (after RO) at 1.125.000.000 shares issued on a pre-split basis. :whistle: :cry:

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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:

What is the advantage? 14 Nov 2017 07:13 #10505

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We have 75 million authorized now...so a double sounds right to me.
Should be enough breathing room for them...for now I guess..LOL

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What is the advantage? 14 Nov 2017 07:25 #10506

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HF, I have 30 months to sell off the warrants and if the screw finally turns the right way for CYTX , the warrants may be worth a multiple of their initial valuation. One can dream! LOL.

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What is the advantage? 14 Nov 2017 07:46 #10507

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myownhedgefund wrote: We have 75 million authorized now...so a double sounds right to me.
Should be enough breathing room for them...for now I guess..LOL


Not if you assume more cash is needed and the market "rewards" the doubling of shares with cutting the PPS in half to keep the market cap at the same level. 37,5 Mio shares and warrants brings about 9 Mio- 75 Mio shares required at that "new" level to raise the same amount of money.

Its all so dreadful - I hope nano comes to rescue before June 2018.

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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:

What is the advantage? 14 Nov 2017 08:01 #10508

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Agree Fas
Where does the market value this post RO ?
The facilitators will have been paid, the prop no longer need, the share count increased. Is the temp. preferred share play really going to sway the street even though this is mostly held by retail players ?

We once had such hopes :(

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What is the advantage? 14 Nov 2017 10:08 #10509

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Thanks guys, I found this to be very informative and educational.

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