This is cross-posted, from the other property which tracks the damage Old Marty did to a public life science company then called KaloBios, now called Humanigen. It officially remains in bankruptcy, and now needs a new set of discovery hearings there, in order to clear its latest debt for equity swap/reorganization re-cap. Without additional ado, then:
Well… an anonymous commenter wrote last week that we were missing “an important part of the story” on the benz program, as it pertained to the “debt for equity” swap deal announced December 21, 2017. I think the below is what s/he was getting at. [So… thanks for the tip — but nothing like this appeared in the December 21 materials.]
Significantly, even after these overnight SEC filings (another SEC Form 8-K), the ACTUAL constituent legal documents — though described as “definitive” (i.e., fully-negotiated, if not signed just yet) in the press release — are not being made public. Not just yet, at least.
This company is still a full ’34 Act reporting company. Its stock is traded OTC every business morning. And that stock has risen significantly, since December 21.
So these documents ought to turn up in pretty short order, as amendments to the Pre-Effective SEC 14C Information Statement (if nothing else) just filed.
Until then, though, we are relying on management’s descriptions of the terms of the deal, exclusively. And to be clear, I am sure that the current management is fastidiously honest (in stark contrast to Mr. Shkreli’s stint as chair and CEO — in late 2015).
All that wind up is to say that I’ve revised the masthead, above, because the descriptions provided suggest that management (and perhaps some Nomis Bay related entities) believe some part of the benz IP assets were misappropriated by third parties, in order to garner that lead on the FDA PRV. [That’s the diamond in the rough, here, of course — worth perhaps $300 million, in an existing aftermarket in such vouchers.]
It seems that this “misappropriation” may have occurred separately from the events that center on the dispute with Savant — over funding obligations of the latter, for the benz program dating back to mid-2017.
But I suppose it is possible that the sharp end of the spear in the coming Rule 2004 bankruptcy court discovery hearing and process will lance Savant, here — as having trafficked improperly in technology and IP that it learned about whilst engaged with KaloBios (now renamed as Humanigen) in developing the would be benz FDA submissions.
Or it might point to someone else, entirely. [Okay, this may seem a lil’ crazy — but could Old Marty have interfered, prior to getting locked up? Hmmmm….]
Even so, it seems that some substantial factions connected to the Nomis Bay investors, and some inside the company believe that there may still be a path to receiving at least a judicial/court ordered royalty (in the form of a “willful infringement” tripled running payment) — or outright return of ownership, by similar order, in the exercise of the bankruptcy courts’ equitable powers — by way of hearings, in the coming weeks and months.
But this is all dubious at best, as nothing along any of those lines has yet been filed in Delaware’s federal bankruptcy court — as of this morning, December 28, 2017.
We will keep a weather eye on the horizon, as to all of this, to be sure.
Have a safe, and fireplace warmed — New Years!