Ralph
To help calm down, I read the Company's registration statement (SB-2) filed 11/13, the same day as the Brewer announcement. As the amount of stock registered equals the amount listed as the consideration for the Brewer property, I assume that Brewer is getting all of that stock (which is coming from insiders, not the Company).
The SB-2 also discusses the pending private placement, which I assume you were referring to when you mentioned that the Company is selling stock to raise $ for expansion to meet its production targets for Cultor. It's selling 12 million units (1 sh & 1 wt), at 10 cents under the last operative bid. As I read the statement, the stock sold (as well as the stock underlying the warrants) will be registered within 90 days after the placement is completed. Assuming the warrants are not in the money then, that means at least 12 million shares coming on the market a few months, on top of Brewer's 2.5 million, on a float of about 21 million. In addition, several million additional insider shares are freeing up for possible sale under Rule 144. On the other hand, if the PP is successful, the Company will have the cash, eliminating at least that risk, for now. (The SB-2 says that the Company will need another $10 million to reach their 9/98 Cultor target of 120kg, however, hopefully with a lot less dilution with a price rise coming from meeting the '97 targets). And I guess the market cap will still be within a decent range. What do you think?
At a sale price of, say, 40 cents, the PP (if successful) will bring in about what the Company says it needs within the next four months to be able to meet its 9/97 40kg/mo target with Cultor. That's good. I also see the Brewer relationship as potentially pivotal, not only because (as I understand it) it gives AQSE all the space it needs to meet all of its Cultor contract requirements, but also because it may provide a strong marketing ally in the inevitable (IMO) battle with Hoffman Laroche (assuming AQSE becomes a real threat to HL's lock on the pinking market). You just know that HL will try to undercut whatever AQSE charges. (BTW, as a Hawaii resident, can you comment on the Ka'u location? Does it give AQSE a hedge against possible environmental/other problems that might come up at the Kona site?)
Speaking of battles, what is your info on the "challenge being planned by CYAN"? I read your posts on CYAN thread, as well. There is nothing in the SB-2; I presume there would have been if a formal threat had been issued. I own CYAN as well. I think it's a good idea to do so, regardless of any patent fight, but especially if there is one.
Many thanks,
Jay |
