End of BK
Biovest is essentially out of the woods and Accentia is soon to follow. I expect an announcement next week that Accentia has come to terms with its creditors.
Now the work for the company begins in earnest. Where will they get new funds? New loans,stock sales,long shot partner? The stock price isn't moving yet. Is that because there are few shares available for sale? By that I mean if nobody wants to sell their shares how hard will a market maker work or how much risk will he/she undertake to entice share holders to part with their stock? Conversely how many buyers will be attracted to buy shares locked into a percieved tight trading range?
Until the bankruptcy is officially over the companies have no way to issue new shares. Once that prohibition is lifted the question then becomes where will they set the price? I think they should price a secondary higher than the current ranges in an effort to demonstrate their confidence in BiovaxID, to say to new investors "We have a blockbuster here and we expect to be well compensated for allowing you to participate in a monumental growth opportunity."
What do you think?
Sam Bass