Well folks, this Friday is Halloween and undoubtably CYTX will mark its 30 day anniversary of closes below a buck. We all know what happens next and the process of staying alive on the Nasdaq, but seriously, how do we avoid the 1 for 5 reverse split DOV and some others think is right around the corner? Have we sunk to a point of no return here by consumating this deal with the devil ?? Hedge, before you reply, I must give you credit where it is due, your glass less than half full approach has been spot on from the get go. Congrats for seeing through the hype.
The process is long for delisting so I dont expect a R/S for some time yet as most companies wait til the very end as extensions are finally exhausted.
I am still waiting to see if we hit new 52 week lows as I watched the trading volumes last week.
I would be very surprised if we dont see at least a million or two short shares covered but who is buying the rest ? Few quaility names invest in pennies and some will HAVE to sell due to the PPS. To be honest its been basicaly a hedgefund playground here for years and I doubt that changes anytime soon.
Cash and reimbersement....neither problem solved after so many years.
no way we are being delisted as there is too much money to be made by the Wall Street pros in this "good story" stock. As for the R/S it will not happen for some time, if at all. There will be extensions and proposals for courses of action submitted to the NASD that can delay the R/S for months, if not a year. I say, "if at all", on the basis that the market cap of CYTX is ridiculous for a company with such potential, subject to management competence, of course.
As an aside and given the Halloween festivities .......... I was going over the regulatory filing of our latest funding and couldn't believe the complexity of the document and how weighted it was against the existing shareholders ........... ie. FULL OF TRICKS
But then I noticed a provision that filled my heart with hope. Roth/Maxim and Co. do care about us after all. I finally found a TREAT. :happy: They specifically forbade management from undertaking any DEATH SPIRAL financing. Perhaps after having done this funding deal with CYTX management they feared that these guys could be capable of anything (stupid), and saw fit to protect themselves, and us as well.
So thank you Roth/Maxim and please, please, please, do not sell ALL of your warrrants so this clause remains in effect.
(a) From the date hereof until seventy five (75) days after the Stockholder Approval Date, neither the Company nor any Subsidiary shall issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents.
(b) From the date hereof until such time as no Purchaser holds any of the Warrants, the Company shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (or a combination of units thereof) involving a Variable Rate Transaction. “Variable Rate Transaction” means a transaction in which the Company (i) issues or sells any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive, additional shares of Common Stock either (A) at a conversion price, exercise price or exchange rate or other price that is based upon, and/or varies with, the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock (it being understood that anti-dilution adjustments do not make a security subject to this definition) or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company may issue securities at a future determined price. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages.
Now if there is anyone at Cytori who looks over this blog, please note that DEATH SPIRAL financing is a BAD BAD thing to do.
Certainly there is room for multiple views on topics of discussion but to me this is protection for the new buyers that they would be able to quickly unload their newly aquired shares without competition or PPS erosion from another dilution.
No one cares about the shareholders already "screwed" shall we say.
I agree with you concerning the protection provided to the new shareholders. Reading the agreement that comes out loud and clear. Management and the new shareholders do not give a shit about us........ we were screwed and may well be done over again.
The whole point about the " Treat" ie. Death Spiral financing was an attempt at sarcasm on my part ....... I'll try and not be so subtle going forward.