antao Posted November 8, 2016 Share Posted November 8, 2016 This is kind of a special situation. Biocardia was intending to IPO in March for a mkt cap of 146 M$. They ditched the IPO because of market conditions and instead went for a reverse merger with shell co. Tiger Medical closed in October 24. The combined co (basically Biocardia) is trading for 0,16$ when the shell co was trading for 0,10$. Mkt cap is 37M$ (25% of the original IPO mkt cap). OPKO Healthcare CEO Phillip Frost owns 33% of the co bought through the acquisition of 65% of Tiger a few months before the rev-merger. Link to comment Share on other sites More sharing options...
rukawa Posted November 9, 2016 Share Posted November 9, 2016 Do they have any assets? What exactly am I buying? Link to comment Share on other sites More sharing options...
antao Posted November 9, 2016 Author Share Posted November 9, 2016 According to their last 8-K (27 Oct) at the reverse-merger date they had 19.5M$ in cash, no debt and a clinical-stage regenerative medicine business developing novel therapeutics for cardiovascular diseases with its top candidate - CardiAMP - expected to be cleared and start commercialization by 2018. Subsequentially they filed a Form D in 4 Nov stating the selling of 35.9M$ worth of stock. Their cash burn rate is estimated to be around 7M$ per year and they expect to be incur in operating losses and negative CF until 2018. Link to comment Share on other sites More sharing options...
antao Posted January 4, 2017 Author Share Posted January 4, 2017 Quick update: BCDA is up 7 fold in 2 months. We sold our position as we believe there is absolutely no reason for current valuation. Link to comment Share on other sites More sharing options...
investor1 Posted January 4, 2017 Share Posted January 4, 2017 Great trade. Would you short it? Some borrow here and there for ~9%. Link to comment Share on other sites More sharing options...
antao Posted January 5, 2017 Author Share Posted January 5, 2017 Great trade. Would you short it? Some borrow here and there for ~9%. We do not engage in short selling, so the answer is no. Having said this, we believe the company is currently not worth more than $1 per share and is probably worth less than that. Link to comment Share on other sites More sharing options...
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