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   Biotech / Medicalbiocircuits BIOC


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To: Steve Robinett who wrote (35)7/7/1997 8:43:00 AM
From: Steve Robinett
   of 65
 
To All, Looks like BIOC just got its reprieve, i.e., the second and biggest chunk of its much-needed financing.
biz.yahoo.com
Combined with the recent Beckton-Dickenson announcement, potentially solving BIOC's sales and manufacturing problems, the financing will keep them alive another year and avoid Nasdaq delisting. Under the circumstances, all of this (IMO) is good news, even with the 2-to-1 dilution from the private placement (1 share common plus warrant for one share). As the man falling from the 10th floor of a building said when the window-washer he passed at the 5th floor asked him how it was going--so far, so good.

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To: Steve Robinett who wrote (37)7/7/1997 12:59:00 PM
From: Craig Rodkin
   of 65
 
Steve,

2 positive announcements within a week and the price doesn't budge.
What gives?

-Craig

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To: Craig Rodkin who wrote (38)7/7/1997 5:08:00 PM
From: Steve Robinett
   of 65
 
Craig, good question. First of all, BIOC isn't Intel. Nobody follows it. More importantly, the news says BIOC has a shot at staying alive for another year. That still isn't positive results, i.e., making money. Whether they will ever make money is still a big question but they do have the extra year and--maybe--Becton Dickenson to help solve some of their sales and production problems. What the stock needs is some indication the $5 million that's keeping them alive isn't being thrown down a rathole, i.e., sales sufficient to indicate BIOC might someday rise from the dead. At my buy-in price, I'd be happy with anything over a buck. To get that, BIOC probably has to sell something to a doctor or two.
Best,
Steve.

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To: Steve Robinett who wrote (39)7/7/1997 7:18:00 PM
From: cgl69
   of 65
 
To All, I noticed that there is a lot of insider buying going
on in this stock ( as reported at insidertrader.com )

Ten insiders buying in at a price slightly higher than today's close.

Anyone have any ideas about the significance of this?

Greg

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To: cgl69 who wrote (40)7/8/1997 1:42:00 AM
From: Steve Robinett
   of 65
 
Greg, What you're seeing on the April 14th-15th insider buying--10 buys--is the first step of a three-step financing deal. Check BIOC's most recent 10-Q. It talks about the first tranche being completed on April 15th. Since they just announced today that the $5 million July trance was completed--the most important of the three steps because it will keep them alive another year--I expect to see another big chunk of insider buying in the July insider numbers. These people are getting a quick 50% for their money, shares at about a buck and one warrant per share for another share, dilution but, as I said in the above post, the money gives BIOC more time to try to grow up and become a real company. Now they need a good menu of tests and some docs to buy the whiz-bang tester.
Best,
Steve

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To: Craig Rodkin who wrote (38)7/15/1997 2:51:00 PM
From: Craig Rodkin
   of 65
 
All,

Nice volume today; and we're up to a buck. Is this due to the 2nd trench
or is this a prelude to next Q results due on the 23rd (or is it the 27th).

-Craig

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To: Craig Rodkin who wrote (42)7/15/1997 4:00:00 PM
From: Steve Robinett
   of 65
 
Craig, Just guessing but I'd say it's the 2nd-tranche-effect. Without it, they were deadmeat--delisted and gone to the pinks. With it, they live for another year. Combined with the Beckton-Dickenson deal, solving their sales and manufacturing problems so they can pay attention to expanding the test menu, this dog is starting to hunt.
I took a look at some of the back SEC filings. If I've got this right, it appears the 10 investors in the private placement financing deal put in equal portions. Among the 10 are the Pres and a couple of other insiders. That means over the last 4 month, each of them has ponied up about $600,000 to keep BIOC alive. I do like to see insiders putting more money in a company. Especially when they're buying in at about $1 and my cost is 13/16.
Best,
Steve

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To: Steve Robinett who wrote (43)7/17/1997 2:26:00 PM
From: T.L.Smith
   of 65
 
Pretty nice move today.

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To: T.L.Smith who wrote (44)7/17/1997 4:10:00 PM
From: Steve Robinett
   of 65
 
There does seem to be some interest. The question comes up now when any more good news will show up. We've had the Beckton-Dickenson news and the 2nd tranche of the financing that will, they say, keep them alive another year. The next news might--just guessing--have to do with an expanded test menu and that will take a while. Still, on a percentage basis, I'm happy.
Best,
Steve

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To: Craig Rodkin who wrote (42)7/19/1997 7:02:00 PM
From: Steve Robinett
   of 65
 
Craig, et al,
I just got a letter dated July 3, '97 via my broker from BIOC. Evidently they failed to meet the performance benchmarks for the 2nd tranche of the April financing, i.e., placing 88 units. The April financing people pulled the plug on the deal but some of them went into a private placement (July financing) that gives BIOC about the same amount of money, about $5 million. This time, there are no performance requirements and the warrants are exercisable immediately at $.75. That has to be the volume we've seen recently, these guys flipping the warrants for a 50% profit.

As of 18 July 97, there are four new and very interesting Edgar filings. The 10Q/A2 states:
"On July 3, 1997, the Company closed the July Financing in which the Company sold 6,853,567 units at $0.75 per unit, each unit consisting of one share of common stock and one warrant to purchase one share of common stock at $0.75 per share. The warrants issued in the July Financing expire eighteen months after July 3, 1997, subject to certain adjustments. The July Financing resulted in gross proceeds to the Company of approximately $5.1 million. With these funds, the Company believes its cash resources will be adequate to satisfy its requirements until the end of the second quarter of 1998."

edgar-online.com

Will the $5 million get BIOC through to Q2 of '98? Only if they get a reasonable level of sales. The burn-rate is higher than $5 mill and all their filings say expenses are going up.
Share dilution and potential dilution is also going up, as is typical of last ditch efforts by a company to stay alive. For example, of interest is BIOC's failure to meet the performance guarantees in the letter of credit that got them a bank loan. This, too, was renegotiated, resulting in a reduction of funds available under the letter of credit by 2/3 to about a quarter million and lowering of the warrants associated with the letter of credit to an exercise price of $2 from $6.
Getting past $2/shr seems to me currently next to impossible. Even getting to it is almost impossible. Which, of course, doesn't mean you can't make a couple of bucks between $.75 and, say, $1-3/8
Best,
Steve

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