La Jolla Pharmaceutical (LJPC) value debate is raging on as investors consider the facts in the merger agreement with Adamis Pharmaceuticals Corp (ADMP). Some investors have stated that the value is to be decided by the market while other say simple math proves the value was set in the merger agreement.
New York, NY. TapeBeat.Com the news and research portal for the serious investor has noted an extreme range of disagreement among investors and traders about the value of La Jolla Pharmaceutical (LJPC) and Adamis Pharmaceuticals Corp (ADMP). To say it's a disagreement is putting it mildly. Some investors have been clearly inferring it would be better to let the stock fly even if simple math may prove the value set at a much lower range and leave 'others holding the bag'. Traders at TapeBeat.Com freely share information and research and would like the facts, whatever they are, brought to light and to make sure full due diligence is available to all. A discussion thread was started on TapeBeat.Com which spilled over into other boards where some put the value of La Jolla between .04 and .07 (xluckystrike21 and others). LJPC closed at .25 in after hours trading after a 2 day run up of about 280%. So is the value less than a dime or more than a quarter for La Jolla (LJPC).
The discussion thread that was started on the La Jolla Pharmaceutical (LJPC) Merger with Adamis Pharmaceuticals Corp (ADMP) begins:
People have it wrong....it is a REVERSE MERGER-ADMP is merging into and becoming LJPC. In reverse mergers, a company with no business merges with a company who has business.....LPJC has not business but ADMP does. All LPJC has is NET $3MMin cash and nothing else. As in all reverse mergers, the surviving merged company issues stock to complete the merger. In this merger, regardless of what the market price is, the PPS for LJPC is the $3million divided by the number of LJPC shares (66million + 4million options=70million). So the most LJPC shares are worth in the merger is about 4-5 cents. LJPC is first performing a reverse stock split to match prices with ADMP. S0 if ADMP is at about 25 cents, its average for the last several months, LJPC shareholders will at least a 5:1 reverse split for the adjusted share price, and get ONE share in the new company. Current ADMP shareholders will also get one share in the company. In the end, LPJC shareholders will only own 10-20%of the company. So at the current LJPC share price, they will see about a NEGATIVE 80%return on their investment... for the full information visit TapeBeat.Com.
Link to the TapeBeat.Com Forum about LPJC stock: LJPC/ ADMP merger- dont buy in to LJPC
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