transformative deal, page-11

Well, a bit of news, that’s nice.

D’Sylva is a member of the board of directors of CBTE and he is reputedly a principal of Empire Investments which influences BOS’s directors. Our directors are now selling the IP to CBTE.

In whose interest would D’Sylva be working, BOS or CBTE? While D’Sylva has a stake in CBTE, he would seem to also have a stake in BOS via the 20 million shares owned by Empire Investments, bought at one cent each.

BOS, as we know it, is its IP and this is being sold to a company that may be able to develop it. What do the shareholders get from this? Cash and CBTE shares. The cash, one might imagine, will go on the ‘major acquisition’ which may add value and much needed diversity to the company.

Still (yes, still) as a believer in BOS’s IP I see the money being in the development of the anti-bacterial compounds. CBTE pay for the development and gain if it succeeds. If it does succeed it will be a bonanza. So what stake do we as BOS shareholders have in that bonanza (or fruitless searching)? Once upon a time we would have got royalties, say 5% of profits and a share of an exclusivity fee (or some such thing) of a million or two. Now it’s a share of CBTE shares received by BOS. We are yet to see what that might be worth. It is interesting to see that BOS will be getting CBTE at US$1.00 per share while CBTE is currently trading at US$0.65 and has not closed above US$1.00 since Oct last year. [nasdaq.com]

For the moment, the announcement has added .01 to the share price (was 0.020 pre-announcement).