BIOAQ a little context for the inquisitive investor

2018年7月19日

Ok yeah, we all see a wedge forming. Great. Here are a few reasons why I'm accumulating a "q" stock.
Here are the books:
stockhouse.com/companies/ratios?symbol=bioaq

A little backstory:
Bioamber used to trade on the NYSE under the ticker BIOA
On 5/4/18 they filed for Chapter 11 protections.
The ticker was given the q tag and delisted to the OTC
PPS plummeted from an from an ATH around $14 to around $0.004
On 6/18/18, the court ruled to allow DIP financing to keep Bioamber afloat while they sell company to highest bidder.
prnewswire.com/news-releases/bioamber-receives-favourable-court-ruling-and-approval-for-dip-financing-300668033.html

This company manufactures bio-succinic acid using a proprietary process in addition to a lot more IP and the recently built plant.
patents.justia.com/assignee/bioamber-inc
bio-amber.com/_media/en/sarnia/bioamber-sarnia-media-release-final.pdf

The cool thing is that the bankruptcy court set a timeline for the sale of the company.
investorshub.advfn.com/boards/read_msg.aspx?message_id=141652469

The third party monitor assigned to oversee the process (PWC) released 7/18/18 that they received 7 LOIs to purchase...two of the bidding companies were named and they're both billion dollar companies: Greenfield Global and PTT Global Chemicals.
pwc.com/ca/en/car/bioamber/assets/bioamber-016_071818.pdf

Greenfield Global is Canada’s biggest ethanol producer with four plants and some packaging/bottling sites. Private company, but going for 30 years. Very eco-friendly and community minded, they do various projects with government support and are part of national effort to meet Paris Accord Climate Change Targets (unlike certain neighbors we could mention, cough). The feelgood local choice.

PTTGC is Thailand's largest petrochemical and refining company, an arm of state owned giant PTT, whose revenue last year was US$64.2 billion. Committed to finding eco friendly solutions and another community minded corp, they always pays a minimum 25% of net profit as a dividend.
“PTT Global Chemical – Better chemistry for better living”
*Credit to NestEgg McMuffin on ihub for the DD on the bidding companies.

The next steps in the timeline are:
7/27/18 Deadline for binding offers
7/30/18 Deadline for acceptance of offer
7/31/18 Execution of sale

So 7/31 is the big day; it could easily sell for a price that translates to a price per share of $1 to $2 to ....?
Also, it could fall apart or the common stock could get screwed and go to 0.
Very exciting.

2018年7月20日

註釋

IMO The two biggest questions to ask yourself:

1. Will the commons be wiped out or excluded from the proceeds of a sale/liquidation?
If you believe so, close your position. If not, lock in your longs.

2. What will purchase/liquidation price translate to PPS?
It's hard not to get starry-eyed over valuations...your guess is as good as mine, but I think it's safe to say that $0.061 pps with a market cap of 6.9M is a tad undervalued.

Just my opinion on a couple things:
Judge Pinsonnault and PWC have shown they're acting in Bioamber's best interests (DIP financing, KERP, etc.).
I think it's possible that PWC consulted the judge in releasing two bidder's names in order to give other bidders that are low-balling,a bit of guidance for a competitive bid..."if you want to play with the big boys (aka PTT and Greenfield) then you've got to get your big boy check book out."

I guess we'll see come 7/31.

2018年7月20日

註釋

PWC and Court docs
pwc.com/ca/en/services/insolvency-assignments/bioamber.html

2018年7月20日

註釋

Resistance @ .07 is broken. Expect a gap up Monday morning unless MMs are still trying to push it down.
This stock is like a soap opera

2018年9月4日

註釋

Hold on everybody, this will be an interesting week!