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TOPIC: The Case for an Eventual Buyout

The Case for an Eventual Buyout 03 May 2017 10:36 #9260

  • franshei
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Fas, I dare to say CYTX's current mandate is working toward an eventual corporate buyout. And, I think the potential buyer may be a Chinese entity.

Reasons for the case as follows. I have raised this possibility with Tiago Girao, several times (no reply)- for the benefits for all inside and outside the company.

1. Hedrick was in Shanghai, China very recently, while the 4th Q CC was delayed. He was in China attending a partnership conference. Shanghai is currently the financial capital of China, flashed with a lot of money everywhere. China is very anxious to invested overseas, with a new focus in biotechs. There are quite a few new biotech buyouts recently. $ 100 million per piece is very little money for the Chinese.

2. CYTX has a very good corporate structure - maybe too much structure for such a small, money loosing biotech. It has several structural regional exposures - USA, EU and Japan.

3. All these new project layout/pipeline products and business plan are to strenghten the corporate value. The company has 2 analysts' evaluations (nonsense to all of us, but needed in a partnership talk).

4. Many most recent corporate actions including the AZA acquisition are all crazy, but they are probably needed in a multimillion dollar partnership talk.

5. A buyout or a potential buyout needs a very strong catalyst: a solid FDA approvable indication. Elliot Fineman, one of the best legal mind in the biotech area, told me that this catalyst is absolutely needed. Do we have this catalyst? Make a quess!

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The Case for an Eventual Buyout 03 May 2017 11:42 #9261

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franshei
I agree a buyout is a likely endgame. (assuming survival)
I have no idea about China being the source region of a buyer.
I am in the circa 2020-2025 camp for a timeframe
If the tech is to advance, we need someone with the cash and know how to run a business. Current bozos have never had either.

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The Case for an Eventual Buyout 03 May 2017 13:40 #9264

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China has a lot of money going overseas. Many overseas ventures are partly private money and partly government money. China is not going to cash out their US treasury holdings/debts. They are using the money to buy overseas assets.

Look at Dendreon and KOOL, all the buyout or cash infusion have come from China. Right now US biotechs are all grossly undervalued and the US public and the US government have no appreciation in the value of this industry. Many new Chinese capitalists and return science students understand the value of this industry.

CYTX can be a very valuable asset to acquire. In the right hands, celution 800 and CTX2 can be widely marketed in China. K T Lim has no connections. There are so many stem cells clinics in China (more than 500) and they can use these machines. But, CYTX needs the right channels to do the job. I am sure some Chinese capitalists know this (They see the value in KOOL the same way.) In terms of autologous stem cells, Chinese would have a very different view from that of our x friends here. Chinese traditional concepts of self healing over a prolonged treatment period (as reflected in the use of herbal medicine and the likes) would welcome CYTX celution systems, as it is so in Japan. Actually, the celution system is perhaps the best bed side mesenteric stem cells harvest system for the clinic.

I think Jason of Maxim is trying to broker a CYTX deal in China. Jason has been in China many times and he did arrange Hedrick's March meeting in Shanghai with potential corporate partners.

I think the Chinese would take similar steps as the Japanese in an eventual buyout, started with a limited partnership.

I think CYTX is building as a case for big money investment from China. CYTX is becoming both a medical device and a drug delivery company, Hedrick is positioning himself more in a scientific role and his company more in r/d (about 31 people in the company are in r/d) than something else - I think he can leave management of the whole company to someone else. This would be Ok for the Chinese.

CYTX and Maxim are in the same bed if this is indeed what is going on. The recent funding is kind of bridge money. I think something is coming through very soon. The reason that the CYTX management is so distant in understanding our frustration in the PPS is simple. The company is evaluated as a collective total asset (this may be why Hedrick needs Habeo, nanotech, Barda, Japan, EU, MAP, etc) -by two independent parties, one from each side. The total asset would then be divided by the outstanding shares to get the share price for a deal.

This is how we sold Lyphomed and SuperGen (SuperGen is super generic, using liposomal/nano technology). In the case of Lyphomed, pentamidine (sale of $ 100 million) was priced for $ 500 Million and gallium nitrate (at NDA stage with just potential sales number) was priced at $ 250 million and over 100 generic injectables/manufacturing sites and office buildings were priced for $ 250 million. Morgan Stanley was our banker and Fuji's banker was First Boston.

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The Case for an Eventual Buyout 04 May 2017 11:07 #9265

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I do respect all the brain-work going into your speculations and deliberations, but on this one I can be rather short-

Anybody he is responsible for losing 99% of the stock-value, since he took command of the Company as CEO and also was co-responsible for gigantic strategic blunders and dilution before that time, is very unlikely to get it in his bleeping head to be looking for a potential buy-out, assuming he has...

One gram of RESPONSIBILITY, DIGNITY, HONOUR and about 20 similar values left in his body .

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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 Case for an Eventual Buyout 04 May 2017 12:49 #9266

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Don't sugar coat it Fas...tell us how you really feel...LOL !!!

Weather JK was laying the ground work for a future buyout or just to find some sort of support for the latest round of financing is unknown for sure.

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