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TOPIC: The danger of Oxford

The danger of Oxford 30 Mar 2018 06:20 #11624

  • myownhedgefund
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The following clipped from page 18 of the recent 10K

***The Term Loan accrues interest at a floating rate equal to the three-month LIBOR rate (with a floor of 1.00%) plus 7.95% per annum. However, from January 2017 through August 2017, we were required to make payments of principal (in the amount of $590,000 per month) and accrued interest in equal monthly installments of approximately $725,000. On September 20, 2017, we and Oxford amended the Loan and Security Agreement to extend the interest-only period to August 1, 2018 (as we satisfied a requirement to raise unrestricted net cash proceeds of at least $5 million on or before December 29, 2017), beginning September 2018, we will be required to make payments of principal (in the amount of approximately $1.3 million per month) and accrued interest in equal monthly installments of approximately $1.4 million to amortize the Term Loan through June 1, 2019, the maturity date. ***

The danger is what is left to give to amend the terms once again ?
This basically eats up any capital raised after the R/S.
Geez, they need far more than expected....they have to sell !!!
Currently, its hard to even justify $0.50 in a sale.

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The danger of Oxford 30 Mar 2018 08:50 #11625

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myownhedgefund wrote: The danger is what is left to give to amend the terms once again ?
This basically eats up any capital raised after the R/S.
Geez, they need far more than expected....they have to sell !!!
Currently, its hard to even justify $0.50 in a sale.


Yes- it looks like an end-game type thing here, like in the Hunger games, with the difference that (hopefully) nobody gets killed here...:grin: :grin:

Hedge- I think there are several Nasdaq/SEC rules that restrict the amount of money which a small cap outfit can raise in any one year. Here we are talking about small pocket money of 27 Mio$- larger than the market cap and Oxford surely does not want to re-negotiate the terms for another 10 years.

There are other things- like the building leases and the options which will come in April, which point to decision time- good or bad.

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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:

The danger of Oxford 30 Mar 2018 09:45 #11628

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fas wrote:

myownhedgefund wrote: The danger is what is left to give to amend the terms once again ?
This basically eats up any capital raised after the R/S.
Geez, they need far more than expected....they have to sell !!!
Currently, its hard to even justify $0.50 in a sale.


Yes- it looks like an end-game type thing here, like in the Hunger games, with the difference that (hopefully) nobody gets killed here...:grin: :grin:

Hedge- I think there are several Nasdaq/SEC rules that restrict the amount of money which a small cap outfit can raise in any one year. Here we are talking about small pocket money of 27 Mio$- larger than the market cap and Oxford surely does not want to re-negotiate the terms for another 10 years.

There are other things- like the building leases and the options which will come in April, which point to decision time- good or bad.


The principal amortization of the 13.6 million due Oxford beginning in Sept. is surely an issue of concern - however, imo it represents an even more compelling reason for a major partnership or sale before too long - also, the reality is that the 13.6 million is minor compared to the inherent value of CYTX - there is no way that Oxford winds up with the assets currently pledged - something will be done imo.

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The danger of Oxford 30 Mar 2018 13:13 #11629

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RS
No matter what the course...likely crumbs for shareholders....perhaps the pleural is even too generous. CRUMB is more like it.
The point is a partnership will bring in little and there is still the issue of what Oxford will agree to in such a partnership. Cytori cant just sell what Oxford has potential claim to.
Lets say some deal does come in....they still need to do a R/S and raise cash what wont last very long at all !!!!

If we are talking a outright sale then its hard to say how far a suitor would let things fall before stepping in with a bid but running numbers again I couldn't really justify $0.50....but lets call that the upper limit for me.
Fas recently suggested $0.50 to $0.60 ( he may want to amend that one way or the other)
You recently said you supported JK's $5 target...which as we know is now $2 which we should also know is where it will NOT trade. So give us a buyout estimation RS.

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