Re: Farmas USA
SGYP
Synergy did not disclose during conference calls, nor bother to highlight except on a 10-Q report, was that this loan was subject to the company having a certain amount of cash at the end of January 31st to obtain the next tranche. I am struck in particular by a statement from CFO Gary Gemignani during the last earnings call:
Under the terms of the agreement, we have access to an additional $100 million on or before February 28, 2018 and up to two additional tranches of up to $50 million on or before March 29, 2019 subject to certain conditions. While I cannot comment on specific conditions required to access the additional tranches beyond what’s publicly disclosed, I can tell you that we are confident in our ability to meet the conditions that will allow us to access to the additional capital if and when we need it.
That looks a lot like obfuscation in hindsight, bordering on deliberate misdirection.
Even without the warrants being exercised, the share float will be expanded by nearly 10%. That increase is doubled, if the warrants are all exercised. That is far from encouraging. The warrant represents an egregious error on the part of Synergy’s finance team.
The case for Trulance remains strong, and thus so does the case for Synergy. But it may take the market a while to see that. Especially with the loss of confidence in management’s statements.
https://seekingalpha.com/article/4124607-synergy-pharmaceuticals-misjudged-secondary-offering
«Después de nada, o después de todo/ supe que todo no era más que nada.»
