no_free_lunch Posted November 4, 2019 Share Posted November 4, 2019 I would tender but I have no idea how to. It's kind of foolish of me not to, so I guess i need to consider selling the position so I don't lose out. Link to comment Share on other sites More sharing options...
Philbert77 Posted November 5, 2019 Share Posted November 5, 2019 You should be able to just call your broker and tell them you want to tender your shares for the substantial issuer bid. You should also receive paperwork in the mail explaining your options and how to proceed. Link to comment Share on other sites More sharing options...
wisowis Posted November 5, 2019 Share Posted November 5, 2019 Why isn't it trading closer to the tender price of $6.50? The Offer Documents are expected to be mailed to shareholders of the Company as of the mailing date What is the mailing date? Today? There's no other reference to it in the press release. Link to comment Share on other sites More sharing options...
no_free_lunch Posted November 5, 2019 Share Posted November 5, 2019 Why isn't it trading closer to the tender price of $6.50? The bear case is they only buy back about a quarter of the shares. So you will make money from here on those 27%+ that they buy from you. However, what happens to the share price for the remaining shares after that? Post buyback the cash reserve is cut in half ($45m -> $19m) and consider they lost a million last quarter. Maybe it goes right back down to $3 for the 70% shares they didn't buy. So net-net I think the math works out that you are down. That being said not everyone will tender and so you will probably get a bigger fill than 27%. The bull case is this may signal managements perception of zypitimag. Very interesting. Link to comment Share on other sites More sharing options...
no_free_lunch Posted November 13, 2019 Share Posted November 13, 2019 I actually think that REDS is the best shot for the company. REDS is a device that lets doctors monitor fluid in patients lungs. It seems to be used after heart attacks. It could be a huge market. After medicure bought in, Bayer seems to have gotten rights to Europe. Sensible Medical Innovations and Bayer successfully signed an agreement making Bayer, Sensible's largest customer in Europe. .. HF is a serious and chronic medical condition in which the heart is unable to adequately fill with and eject blood. It is a global pandemic affecting at least 26 million people worldwide and is increasing in prevalence. HF health expenditures are considerable and will increase dramatically with the ageing population. https://www.prnewswire.com/il/news-releases/sensible-medical-innovations-licenses-reds-technology-to-bayer-300857490.html Very speculative but I am holding for now. I just have to wonder, why did they set the buyout price so high? The stock was at $3.25, why not just start buying it up on the open market? Why buy shares at $6.50, double the current price. Maybe their arms are being twisted by activists. Or, maybe they have something. Or maybe this is just really poor capital allocation. We will see. Link to comment Share on other sites More sharing options...
Philbert77 Posted November 13, 2019 Share Posted November 13, 2019 I think I may tender some. It is too large a position for my level of confidence in them. This whole process seems to have taken far too long. Link to comment Share on other sites More sharing options...
no_free_lunch Posted November 19, 2019 Share Posted November 19, 2019 The tender offer is out on Sedar. It is for $6.5 and 4m shares. If over-subscribed, they will pro-rate the repurchases. The offer expires Dec 19. Link to comment Share on other sites More sharing options...
YVRtrader Posted November 19, 2019 Share Posted November 19, 2019 The offer will be very significantly oversubscribed. From the issuer bid circular: To the knowledge of the Company, after reasonable inquiry, as of the date hereof, the following Disclosable Persons intend to tender Common Shares pursuant to the Offer. Following the date of this Circular, any Disclosable Person may or may not, in their sole discretion, tender all or any portion of their Common Shares pursuant to the Offer. Name MM Asset Management Inc. PenderFund Capital Management Ltd. # of Shares/% of Outstanding Shares 3,977,145 26.9% 1,898,350 12.8% Link to comment Share on other sites More sharing options...
YVRtrader Posted November 19, 2019 Share Posted November 19, 2019 Might as well tender every share you own. You'll end up selling a fraction of the shares you tender (at $6.50) and should have plenty of opportunity to buy back under $5. I think I may tender some. It is too large a position for my level of confidence in them. This whole process seems to have taken far too long. Link to comment Share on other sites More sharing options...
Philbert77 Posted November 20, 2019 Share Posted November 20, 2019 That's a good point. I hadn't thought of that option (buying back in on the cheap). Link to comment Share on other sites More sharing options...
YVRtrader Posted November 20, 2019 Share Posted November 20, 2019 FWIW, I estimate that those tendering their shares will be prorated to get $6.50 for approx 40% of their tendered shares. Assumptions: The two largest shareholders will tender all of their shares (39.7% owners) Albert Friesen, CEO, (16.3% owner) will not tender any shares Retail holders will tender two thirds of remaining shares (estimate) I don't expect many people to try and arb this offering because it will be very difficult to unload the remaining 60% of their shares on such an illiquid stock. Earnings before the tender expiry is notable. Seems that proceeds from the offering will not be taxed as a dividend for Canadian residents. "An Individual Resident Holder who sells Common Shares to the Company pursuant to the Offer will be deemed to receive a taxable dividend equal to the amount by which (i) the aggregate Purchase Price received by the Individual Resident Holder for the Common Shares so sold exceeds (ii) the paid-up capital of such Common Shares for Canadian federal income tax purposes. Any such deemed dividend will be subject to the normal dividend gross-up and tax credit rules generally applicable to taxable dividends received from a taxable Canadian corporation, including the enhanced dividend gross-up and tax credit if such dividends were to be designated as "eligible dividends" by the Company. The Company has informed counsel that the Company expects that the paid-up capital of each Common Share will exceed the Purchase Price. Accordingly, the Company does not expect that any Individual Resident Holder will be deemed to receive a taxable dividend on the sale of Common Shares pursuant to the Offer." Link to comment Share on other sites More sharing options...
wisowis Posted November 21, 2019 Share Posted November 21, 2019 If the deal will be so heavily over-subscribed, I don't get why they didn't offer a lower tender price. Link to comment Share on other sites More sharing options...
no_free_lunch Posted December 18, 2019 Share Posted December 18, 2019 If the deal will be so heavily over-subscribed, I don't get why they didn't offer a lower tender price. Yes, it is very strange to have the set the price so high. Maybe they are trying to avoid lawsuits? I am hoping that they are seeing high sales next year and don't want to be liable for buying out shareholders at a lowball number but that is just speculation. Deadline to tender is tomorrow. Link to comment Share on other sites More sharing options...
no_free_lunch Posted December 20, 2019 Share Posted December 20, 2019 Based on the preliminary count by Computershare Trust Company of Canada (the "Depositary"), a total of 10,154,952 Common Shares were properly deposited under the Offer and not withdrawn. As the Offer was oversubscribed, the Company will purchase Common Shares deposited on a pro rata basis following determination of the final results of the Offer. The Company expects that tendering shareholders will have approximately 39.4% of their tendered Common Shares purchased by the Company under the Offer. YVRtrader nailed it. 40% of shares tendered to be purchased. Link to comment Share on other sites More sharing options...
no_free_lunch Posted December 31, 2019 Share Posted December 31, 2019 I received the proceeds from the tender today, just under 40% of my shares were purchased. With the stock at $4.20 it is not looking very good right now, in retrospect should have sold when it spiked above $5. For the time being I will continue to hold and see what happens with their new products in '20. Link to comment Share on other sites More sharing options...
no_free_lunch Posted December 31, 2019 Share Posted December 31, 2019 The CEO did not tender his shares and now owns over 21% of the company. Why did he not tender? Immediately prior to the completion of the Offer, Dr. Friesen had ownership of, directly and indirectly, or exercised control or direction over, 2,375,355 Common Shares (representing 16.0% of the issued and outstanding Common Shares before giving effect to the Offer). Immediately after completion of the Offer, Dr. Friesen has ownership of, directly and indirectly, or exercises control or direction over, 2,333,227 Common Shares (representing 21.6% of the issued and outstanding Common Shares after giving effect to the Offer). https://www.newswire.ca/news-releases/early-warning-news-release-dr-albert-d-friesen-holdings-in-medicure-inc--832967831.html Link to comment Share on other sites More sharing options...
Philbert77 Posted December 31, 2019 Share Posted December 31, 2019 Guess he has confidence in the value of the company... Link to comment Share on other sites More sharing options...
no_free_lunch Posted August 24, 2020 Share Posted August 24, 2020 Medicure is out with a study linking AGGRASAT to COVID-19 treatment. I have read that thombotic complications were present in 31% of ER COVID cases in one study so this could be a sizable market. Who knows but i am optimistic, Medicure has a $13m market cap so this could be big. Medicure Inc. ("Medicure" or the "Company") (TSXV:MPH, OTC:MCUJF), a pharmaceutical company, is reporting that early investigator sponsored clinical reports evaluating the efficacy of AGGRASTAT® (tirofiban hydrochloride) show promise for preventing and treating thrombotic complications due to COVID-19. AGGRASTAT® is not currently indicated for use in patients with COVID-19. Notably, a non-randomized, case-controlled, investigator sponsored proof of concept study (n=10) evaluating AGGRASTAT® in combination with standard of care in patients with severe COVID-19 and hypercoagulability found that enhanced platelet inhibition improves hypoxemia (https://clinicaltrials.gov/ct2/show/NCT04368377). Treated patients experienced a mean reduction in alveolar-arterial oxygen gradient and an increase in PaO2/FiO2 (ratio of partial arterial pressure of oxygen to fraction of inspired oxygen) at 24h, 48h and 7 days after treatment. Seven other small clinical reports have recently been published exploring the clinical efficacy of AGGRASTAT® in patients with COVID-19. https://www.newswire.ca/news-releases/medicure-announces-aggrastat-r-shows-promise-in-treating-thrombotic-complications-due-to-covid-19-in-early-clinical-reports-892159044.html Link to comment Share on other sites More sharing options...
deleuze68 Posted November 12, 2020 Share Posted November 12, 2020 I've been nibbling away here. Now trading at less than cash. Expenses have been tamed for now which gives them some time to return to profitability. Looks like Covid has hurt their sales of Aggrastat this year (people avoiding hospitals equals fewer procedures, fewer treatments). Zypitamag is fairing better but still only represents a small percentage of their sales. There have been competitive pressures and consequently, margin compression with Aggrastat but Medicure is being pro-active in countering these. They have successfully defended their patents so far (will receive a royalty on the generic Gland will be issuing in 2023). Currently in litigation with Nexus, who makes another generic. Medicure is also agressively looking to expand the use of Aggrastat as mentioned above by no_free_lunch. REDS was obviously a bust as they have completely written off that investment although they do still retain an equity stake in Sensible Medical. So potential for a hail mary there. Management seems committed continuing to buy back shares through the NCIB. The SIB has now proven to be a horrible use of cash though. But at the same time the SIB was only possible as a result of management's wise use of capital in the past. Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now