Max's escape valve...

Check it out. This is from the SEC filing in January when Pernix finalized the deal to buy Cypress/Hawthorn:

"The Purchase Agreement Amendment amends the Purchase Agreement to, among other things, provide for an aggregate purchase price of up to $102 million, consisting of $52 million in cash, 4,427,084 shares of common stock of the Company having an aggregate market value equal to approximately $34.0 million...

...With respect to the Stock Consideration, the Company also granted a put right such that the Sellers may put such shares to the Company at approximately $5.38 per share, with such put being exercisable from January 1, 2014 until January 31, 2014."

In plain English, here's what that means: Pernix paid MD and the other owners of Cypress $52M in cash and gave them 4.4 million shares of Pernix stock (there is some other money and stock to be paid later, getting the total to $102 million). The "Sellers" of Cypress (i.e. MD and the other investor/owners) can force Pernix to buy back the stock at $5.38/share any time during the month of January 2014. So, if the stock stays in the toilet for the next 9 months, MD and the other Cypress investors get at least $24 million for their Pernix stock.

Not what MD&Co. had in mind, but at least they were smart enough to protect the downside.

 

As of right now that's a mighty big put. CC is going to be scrambling to raise that stock price. 3rd quarter will be crucial

 

You betcha. Pernix only had $24 million in cash on the balance sheet at the end of 2012.

 

Shit. Max's insurance policy could sink the entire company

 

CC/MP better get busy. Stock closed at 2.74 today. They need to practically double the value of the stock in 3 weeks. Anyone got the balls to put a 1,000 on that happening?

 

Looking more and more like it will. Coop and Pearce need to double value of company in 4Q. Also appears very likely NASDAQ will de-list the stock in Nov.

This company is broke. Lights should be out by 12/31.

 

Yeah, that's the word on the street, I asked my financial advisor about the stock and he said its a dog with fleas.

He said based on pharma trends, someone will buy the portfolio but most likely none of the sales force. Who needs 100 reps?

 

I had someone tell me something similar, that they think the products will be sold off and the company (i.e.; sales force included) dissolved!

 

That would explain a lot.

1) laying off entire training dept as there is no intent to train further reps.

2) Coop selling shares daily now, as he knows today's value is best he will likely get.

 

You think they got rid of the training department because there will be no new drugs in the future? I hope the company is still around for the big part of cough season.

 

No new drugs, and no new reps. My bet is 12/31 is all of ours last days. Some in company have already been informed as such.

 

This is about right. No one dare say they werent warned. Better start dustin off those resumes!

 

Screw cough season pal! Look for another job before you get fired n layed off on your ass!

 

So much speculation, so little real information. But CC is king!

 

Who r u foolin? Anyone w any business sense knows this company isnt gonna be around much longer!

 

These are sales reps. They buy beer at 13 years old with Military ID's. Business Sense... REALLY?

 

Clock is ticking who can Coop get rid of next or what can he sell next Pernix needs MONEY

 

What this company is doing is nothing new to anyone who has been in pharma since the 90's. No new drugs, no pipeline how do you expect to stay in business, let alone be profitable??? Generics are taking over the industry so for those defending this company has got to be the biggest fools on the planet. The company got rid of training dept! What does that tell you??! The higher ups know the comp is holding on to its last legs, but what they don't realize is after you do the math, you can lay off the entire sales force including 90% of the employees and guess what?? YOU WILL STILL BE IN THE HOLE!!! That's where plan b comes in play.. selling marketing rights and products pc by pc. It's basic economics and these idiots all seem to be clueless.

Total sales from all products will no way in hell come close to what these idiots owe!

I got out months ago and damn skippy it was the best move I made.