Fox, get ready for it. It's coming.
It'll be all prettied up to look like something special. What's coming will be wrapped like a present, but pretty paper will just keep the flies off.
I'm almost certain that RK will be selling off something, and will attempt to pass off this desperation act as <choke!> good management. Let's review...
I can't remember if CaptainKlutz's SH comments were reposted here, so I'll give a quick excerpt:
"Well it looks like Pennsaid is going to fail in Canada. Script growth has been stalled since October. And I'm not sure Solvay can change it. I thought they might eke out a little niche with $20 or $30 million in sales after a few years. But I doubt they will get anywhere near that. They will be lucky to get to $10 million Cdn. Since one 40 person sales force costs ~ $8 million I doubt there will be enough for both companies to break even."
stockhouse.ca
I should mention that Klutz has apparently accessed industry-wide information (that RK had promised would be given to investors this year - another RK promise, LOL!) - and his information has always been correct.
In addition, several have anecdotal information that his post is accurate
Let's look at the facts:
1 - The burn rate is high.
2 - Pennsaid sales are levelling off (this will be confirmed - she'll try to dress it up but it won't fly)
3 - The company's cash reserves are minimal, and dwindling fast.
4 - Debt is high, and financial commitments in the next year can't be met.
5 - She hasn't even got the Phase 3 data: she doesn't have it. She hasn't even funded a lousy Phase 2 for Fungoff. She's got no money, and The Street won't give her a nickel. She concocted an elaborate song-and-dance, and tried to soft-shoe past her own investors with a pile of malarkey about "conventional financing" when all she could get was the same old equity financing at rates that would make the Mafia blush.
6 - She's nowhere. She has no credibility with The Street (or her own investors, check the RO), can't get cash, insufficient sales, no new products in the pipeline, unavoidable commitments to Dr. Kuhne, not to mention payments from the Provalis arbitration. She's made one tragic blunder after another, and driven the company to the edge of bankruptcy, while treating herself to a raise. Instead of helping investors make a smooth transition to new and better management, instead of working toward the common good, she embarked on another series of blunders. She cut down the size of the BOD, and installed another septuagenarian that won't make waves, to be watched over by Fred, The Guardian Consultant. No way were investors going to be allowed to make a success of Dimethaid. No way.
Dimethaid Research is in desperate straits. She's desperate, and you can bet she's made a Desperation Deal - because that's all she can get.
With whom? My guess is Solvay. What kind of deal will it be?
A cry for help.
We're in trouble, fox.
She's not... she's got those 1.3 million shares she moved somewhere at over $3. She's got a raise. All of it paid with investor's money. She's taking care of herself just fine, thank you, on our money.
The next set of financials will be Spin City. Both parties will tell us what a wonderful deal it is. What will be sold off? My guess is some thing(s) from Oxo Chemie - and you can bet we won't see the fine print. We won't know what it's really costing us - after we already paid $30 million for it.
"However, as posted, RK may have paid for these trials by some alternative method - selling off some of the Oxo Chemie goodies (Oxoferin, for instance). Alternatively, she could have made a partnership with a third party, which partnership would pay for the trials by taking a cut of the profits, or some such."
Message 19953066
That's what I'm afraid is coming.
So when you read the Press Releases, when you see the glowing accolades, remember all the hidden secrets that we've discovered after the fact. Remember her history, on disclosure. Remember the position she's in, and who's sitting in the driver's seat, on any deal she makes.
Most of all, remember the bright promise that was once Dimethaid Research.
Jim |
