EBIO being munched by NGEN, and the rationale for anyone is hard to figure. Perhaps the Grace Brothers, and Dr. Craves, the original CEO, current chairman and Bay City Capital principal, cashed in their cheapest options ($.50) by last year. And started looking for a way out. The rest of their options, with some years left on them, are for much higher prices, so they write those off or hope NGEN actually survives -- which I doubt. But they'd still walk away with a healthy profit. EBIO shareholders, on the other hand, would need to have bought under $2 to get much. Even Gerber doesn't get much here. I wonder if other shareholders would fight the deal. If I'm right . . . Bay City and The Grace Bros. own about 40% of the company, so it would have to be a united front.
You still hold any, Stefaan? I'll be looking to get my Mom out of her shares soon. Don't like the deal, nor NGEN's prospects.
Cheers, Tuck |
