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TOPIC: 13 Mio $ wanted before October 31

13 Mio $ wanted before October 31 30 Sep 2014 05:23 #2335

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:evil: :grin:

On September 29, 2014, Cytori Therapeutics, Inc. (the “Company”) entered into a second amendment of the Loan and Security Agreement
with Oxford Finance LLC and Silicon Valley Bank (the “Lenders”) dated June 28, 2013 (the “Loan Agreement”). Pursuant to the amendment, if the Company raises at least $ 13.0 million (the “Transactional Proceeds”) on or before October 31, 2014 through any one or a combination of subordinated debt, sales of equity securities, or entering into partnership agreements, then principal payments due under the Loan Agreement would be deferred by five (5) or six (6) months depending upon the timing of the Transactional Proceeds. The outstanding balance of the Loan Agreement, including the deferred principal payments, shall re-amortize over the remaining twenty-eight (28) months of the loan term commencing on April 1, 2015. If the Transactional Proceeds are not achieved by October 31, 2014, the amendment is null and void.
If the Transaction Proceeds are raised by October 31, 2014, the amendment provides that the Company will pay the Lenders an accommodation fee of $ 25,000 payable upfront and a restructuring fee of $ 175,000 on the earliest to occur of (a) the maturity date, (b) the acceleration of the term loan, or (c) the prepayment of the term loan.

:KO:

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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:

13 Mio $ wanted before October 31 30 Sep 2014 05:54 #2336

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At past occasions it has been stated that Cytori has a great- and friendly relationship with Oxford Finance. :bash: :bang:

If I recall the conditions of the last three loan- (original + 2 revisions) agreements and now this extension, I would say these guys are simple straight forward loan sharks from some "very bad neighborhood" :cool: :KO:


Ooopss, I forgot to thank Mark Saad again for his great work to leverage a development Company which has no operational cash flows to write home about. :cool:

Great stuff Mark.. :evil: :evil: :evil: :evil: :evil: :bang:

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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:

13 Mio $ wanted before October 31 30 Sep 2014 06:36 #2337

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Not much they can say about Oxford other than prasie when they have to keep begging for revisions to their loan.

Sounds like source of additional funding still very much up in the air as even additional debt a possibility.

13 million wont even last a year.....seems company will remain on life support for some time.

CC and Saad should have been fixed years ago by Mr Dean !!!! :bash:


He ultimately did not do his job !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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13 Mio $ wanted before October 31 30 Sep 2014 07:21 #2338

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Fas,

The amendment to the original loan agreement calls for Cytori to raise at least $ 13 million in the next 30 days or the entire approx. $ 27 million principal balance is due immediately. If Cytori fails to raise the money, Oxford will own all the patents and the company will close its doors without meeting payroll. Oxford would then sell the patents to anyone willing to buy them.

If the company does raise at least $ 13 million in the next 30 days, then principal payments will start again after April 1, 2015 when the $ 13 million has been consumed. Another capital raise will be needed to continue operations.

I seriously doubt the company would have put a specific deadline on its existence without knowing they could raise the money. Having said that, potential partners have run away at the alter several times over the years. Hopefully, this explains why there has been no insider buying since the window opened and the stock plummeted. My bet is that someone will want to finish the Barda contract and participate in the future of regenerative medicine with the low cost producer of clinical grade stem cells.

The clock is ticking and this time it is mounted on a truckload of C4.

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13 Mio $ wanted before October 31 30 Sep 2014 07:28 #2339

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Fas, don't blame Oxford. This mess is the end result of years of mismanagement and a BOD that just passively watched it happen. Some of those responsible are now gone but the Board must be drastically reduced starting with 10xWDean. If they can get through this uncertain period the news flow with Japan, FDA news on Athena ( if positive)and some progress by Lorem in China could change the markets perception dramatically. The million dollar question is are they in the midst of serious partnership talks that can bring in the necessary cash or will it be more dilution through the Cowen ATM? This is news is a baby step forward but better than the alternative.

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13 Mio $ wanted before October 31 30 Sep 2014 07:31 #2340

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Fully agree Lewis.

I would be absolutely criminal to let 250-300 Mio$ of development effort plus all the time personally devoted to the cause, go down the drain, if one was not absolutely damn sure to be able to get that money, which looks basically like the cash-out flow for the 5-6 months in which no redemptions to the loan has to be made.

So yes- something has to break- either the SP to nothing for everybody except Oxford or everybody happy, since "a" deal is finally bestowed upon us. :yawn:

Interesting times... :whistle:

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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:

13 Mio $ wanted before October 31 30 Sep 2014 07:39 #2341

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Ray - I am not blaming Oxford. They are doing the loan sharking work, that is normal in their line of business. :cool:

Although I must say- it was rather misleading to first allow the covenants to be "scrapped" and than put them back into full force a few weeks later. :bang:

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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:

13 Mio $ wanted before October 31 30 Sep 2014 07:46 #2342

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Oh forgot...

I totally agree with you- my suggestion was Dean plus the 4 BOD members who have to most serving time, which would include Rickey too.

The new chairman to come from the industry when the financial dust is settled..... :bye:

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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:

13 Mio $ wanted before October 31 30 Sep 2014 10:00 #2343

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Well what a fine mess we are in . either Chpt 11 or a last minute deal and management did not want to make a deal before because of the terms. what an absolute joke and complete waste of hundreds of millions of dollars. not to worry though management has collected hefty salaries for many years and those that remain will surely get jobs with whomever owns the pieces should Chpt 11 result. No CFO,it appears or perhaps just ineptness. I wrote the company yesterday afternoon for clarification and received none

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13 Mio $ wanted before October 31 30 Sep 2014 11:38 #2344

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The idea that this company with its Intellectual Property, CE approvals, funded US trials, Lorem/Okyanos partnerships and huge range of translational studies could go bankrupt is absurd. USD 28M is petty cash.

The Directors of this company would have a lot to answer for, if that was to happen. There has been GROSS incompetence in the past. This is Management's and the BoD opportunity to do the right thing.

I think it is fair to say that CYTX is not negotiating just with the Oxford bankers. Hopefully they are not talking to only one other counterparty in an effort to address the funding issue. If that were to be the case I think "conspiracy to defraud" would be an appropriate term. Too much can go wrong if you put all your eggs in one basket ............ eg. The One that Got Away"

For the record, if they are listening: I prefer a partnership deal: Better to be a kept woman rather than a worn-out street walker. We've been nickel&dimed to death ....... I want satin sheets.

My apologies to any women readers.
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13 Mio $ wanted before October 31 30 Sep 2014 14:55 #2345

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Just because I am a masochist (apparently), I went back to the terms of the other loans.

This extension which "costs" only 200.000 USD (!!) was a bargain.

I am with you John, that the way this 8K reads, cannot be for real in respect of the Company we have been looking at.

I intend to go back to the days those deals were closed and will try to determine whether GROSS INCOMPETENCE would be synonym with GROSS NEGLIGENCE in those cases.


That makes a difference. :really:
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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:

13 Mio $ wanted before October 31 30 Sep 2014 21:41 #2346

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Fas , Yes....... A round of applause for Mark Saad ....... I knew he was incompetent after my first & last meeting with him.....the incompetence was re-confirmed AFTER he took out this bank loan ....... I stated as much when it was announced. We all reasoned that the only way they would've done the bank loan was that a partner deal was at hand......... well , let's not forget the Calhoun-ster .... 2 of my BFF's ......I know both of those brain surgeons read this board .......Good riddance and thanks for the loan ....the gift that keeps giving......forgot,,,,,,ps - I expect them to easily raise MORE than 13 MM.
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