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TOPIC: 10.000.000$ secondary

$10,000,000 30 May 2014 10:46 #1738

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Is the consensus that management placed a partial of the shelf because they feel that BARDA will come through with funding? At their burn rate 10MM does not give much of a cushion. If BARDA comes through the price could be higher albeit without a short term catalyst. What are your feelings on this?

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,000,000 30 May 2014 12:11 #1739

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They would get a much worse deal, if there is a delay in BARDA payment. I would expect them to place another, bigger one after BARDA payment, UNLESS they get additional projects from BARDA (I guess it would be the best case scenario to get paid, and get more projects)..

As a shareholder, the worse thing would be to run out of money, or time premium.. :bang:

JMHO

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,000,000 30 May 2014 12:23 #1740

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Fatboy-

I have written on this board at least 10 times that BARDA does not bring funding of the business period and only funds the development of an application i.e. only reduces corporate costs.
Financial corporate America- be it banks, hedge funds or other financial institutions is a conglomerate of special interest, dishonesty and a relentless battle for the biggest buck, where no prisoners are taken.

Maybe Cytori- in view of the nature of the business i.e. fighting these forces more than being reliant on them (shorts, front runners like Piper etc) is a bit different.

We recently had the extension of the Cytori Friends & Family warrants (will not happen with the September ones!!!) and now Steve Brozak, the one and only faithful supporter of the business get a small secondary to finance with a generous full warrant over and above the Cowen conditions. :grin: :winky: :whistle:

Whatever- my thinking is that Steve is NOT supporting the shorts in any way- (but I will check) - and one should not look for big reasons for this financing beyond what I wrote. Cytori is simply still a big hole which swallows heaps of money.

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

,000,000 30 May 2014 13:39 #1742

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Fas,
You are correct as usual. Optimism tends to cloud logic. Cytori is not the only "hole" in this endeavor. Days like today make me feel like a "hole" as well. Though I do think that any funding from BARDA would certainly be positive to Cytori. Parrallel development of the celution platform alone would accelorate the possibility of future growth in the business. And having an american government agency affirm the belief that regeneratve cells are a viable treatment for burn victoms can only be positve.

This signals the first major undertaking of the new CEO. With that it gains greater significance. Small steps seem to be wise at this juncture.

Yes the rich get richer and the rest? Enough said.

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100.000.000 07 Jun 2014 10:34 #1769

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I just was reading my comment again from last week.

Just to elaborate a bit, so it is clear what I meant.

I think this secondary is a FAVOR to WBB and its owner Steve Brozak, who has been a consistent and faithful supporter of the technology and always has been a PAID consultant for Cytori. And not so much "strategic for Cytori"

It does not make sense if you think you will get a big contract and do a secondary BEFORE and NOT AFTER that contract. :bash:

With BARDA- some institutional interest will be developed- and Steve´s customers will already have a certain number at decent prices.
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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

100.000.000 07 Jun 2014 11:02 #1770

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My thoughts, one reason for the capital raise is that they want to demonstrate to BARDA their ability to raise cash and be a viable business. One of the members of the IPR team could and should bring up the topic of the balance sheet. After all, if BARDA is putting up developmental money they do need assurances. The capital raise strengthens their response to this matter. Following BARDA approval the shares will rise and provide a better environment for either a further capital raise at better terms or a partnership.

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100.000.000 08 Jun 2014 05:46 #1771

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Yes Ray, that might also have played a role regardless of the Cowen arrangement.

I do know it is the strong wish of a group of shareholders (which wish I support) to fill the coffers to such an extent, regardless whether it is dilutive shareholder or partner money or non-dilutive money and at the same time explain the market how long it will take in the opinion of management to become self-sufficient in cash flow- that is when the inception point will be achieved with clear indications of revenue sources.

Main goal is that once and for all- the cash issue should be off the table (and we know BARDA will NOT do that) so that the Company is managed totally differently than in Calhoun´s day<s, when shorts would increase their activities based on annual requirements for Cytori by Saad and Calhoun

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Board moderator and Site-owner. I still regret the day I started analysing the prospects of MacroPore (now Cytori) back in 2004- a left-over from the tech-bubble at that time from the century change in my portfolio- and became addicted to Cytori´s fat cell technology. :cry:

100.000.000 08 Jun 2014 21:51 #1772

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***Main goal is that once and for all- the cash issue should be off the table***


Wow...who has been yelling about cash levels for years now ?
Who has said you raise MORE than you think you need ?

I would add that the total number of shares DOES matter in the end. IT ALWAYS MATTERS !!!!

That said....not much choice left to them.
One of the worst managed companies ever and every director also has a stake in its failures for allowing it to happen far too long !

Even with BARDA serious issues will remain and it is unknown if this brief period of action is merely a flash in the pan or the start of the long road that must be traveled.

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100.000.000 10 Jun 2014 16:22 #1773

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Fas,

Brozak is a great source of support. If he and his clients can benefit from the placement it would certainly be a catalyst for further investment and instill confidence in the market.

I was expecting more volatility in the share price today. Everyone seems to be holding their cards.

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100.000.000 10 Jun 2014 16:37 #1774

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fatboy

***Brozak is a great source of support. If he and his clients can benefit from the placement it would certainly be a catalyst for further investment and instill confidence in the market***

You dont think if we get a BARDA pop of a a dollar or so that some of those newly placed shares will find their way to the market ?

Add in some short selling and CYTX itself needing to raise more capital we may well be limited what BARDA alone can provide for the PPS.

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100.000.000 10 Jun 2014 16:57 #1775

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Hedge,

Yes that is what capitalism is about. I don't have a problem with someone making a profit. As long as they are playing on an even playing feild. There was risk in the transaction. At least on the face of it. If BARDA bombs the share price will cave big time. If BARDA comes through there will be a market for the shares. I hope the "bump" is more than a dollar. I hope it is the beginning of a long upward trend that creates an environment in which Cytori can develope therapies that can help people live better lives. That is the key to success.

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10.000.000 11 Jun 2014 06:10 #1776

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We will see.

From the past I have always learned that the Institutionals are hardly interested in what happens outside the US- for which reason my immensely big frustration- and that they needed the "buy-in" of BARDA to commit to Cytori.

Again- we will see- if BARDA creates "waves"- from the logic above it should- but that is not MY logic i.e. does not make sense to me.

Of course I hope it does and to me- not hearing anything sofar is HIGHLY POSITIVE. If Cytori heard a no no at the meeting, they would have come out with it already. :cool:

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10.000.000 11 Jun 2014 06:41 #1777

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Fatboy...I am completely with you on making a honest capitalist buck but isnt that what I was saying ? Maybe you missed my point or perhaps I was missing what you were trying to say. Anyway...just to rephrase....there may be many trying for the same door with a BARDA pop in PPS (however high)

Fas...I think the whole FDA issue from a few years back likely is playing a role in the need confirmation from BARDA. As far as the rest of the world, Japan as been our biggest customer for many years and still sales are lackluster. EU has had the same with approved indications for many years and little has happened. What about all the talk about India and their billion+ people ? Zippo !

If there were big sales outside the US at least some institutions would be paying more attention.

The question is what does this phase of approx 30 million add to the market cap valuation ?
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10.000.000 11 Jun 2014 06:51 #1778

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Fas

One more thought along the lines of US institutions investment and their thought on outside US progress of companies.

Why dont we see EU or Japanese institutions heavily invested in Cytori with the work done in their respective countries ? Occasionally we see a small investmnet reported with the quarterly institutional filings but they only seem to trade it like the hedgies. So I would say Cytori still needs validation to earn investment from a larger pool of investors everywhere ! :really:

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10.000.000 11 Jun 2014 09:43 #1779

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Hedge,

I didn't mean to lecture on the benefits of capitalism. And with the warrents thrown in the deal was certainly better then anything the public could ever get. But if you believe that Cytori is positioned to be a leader in regenerative medicine these early dilutions will not hamper the ability of the company to grow and the share price to increase.

BARDA is an important milestone. It would be a great confidence builder for the revamped management team, and it should open up some eyes in the greater investment community.

Fas,
Your frustration with the US investment community is understandable. There are so many investment vehicles available to them. They need validation from outside sources in order to risk capital. Unfortunately they do not value sources outside of the US as highly as they probably should. So any barrier that can be breached be it FDA, BARDA, OKYANOS should make it easier to risk captial.

I know I am not saying anything that everyone doesn't know but I need to inject some optimism to the discussion. For myself mostly.

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10.000.000 11 Jun 2014 10:02 #1780

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Yes- good question on the revenue side of things in Europe (since the approvals are there).
Cytori being a device Company having a superior 510k product -HydroSorb- on the orthopedic market explains that clearly i.e. a practical example from the past.

As a small outfit you use the sales force of a large device maker to introduce your product to the end customer. Why?

Since that end customer is a surgeon or clinic, NOT the patient or general practitioner who prescribes something to the patient. So you need a large sales force pounding on those surgeons who tend to be conservative.

So you need a partner- in the HydroSorb case that was Medtronic- Medtronic screwed Cytori which was possible since CC closed the most stupid contract that you can imagine.

And NO money to establish its own sales force. So you need a partner or organizations like Lorem Vascular- but that takes more time.

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10.000.000 11 Jun 2014 10:32 #1781

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fatboy

No offense take ...we are all here to discuss, share ideas and sometimes disagree but hopefully LEARN from each other.
A nice capital gain would be nice as well...LOL !

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