News Article: Melnyk suing Acerus Pharmaceuticals (Trimel) after significant losses

[Senscore]

Not surprising. Males need help with hydraulics, while with women, it's based on emotions. A drug to alter emotions....that's getting way to close to something that would be used primarily as a date rape drug. That just treads way too much into a territory most legislators and medical boards don't want to go.

What do you think anti-depressants are?

 

[pepty]

Melnyk has had problems with the Ontario securities Commission and was fined and was supposed to be banned for awhile from trading I believe.

Then there was the whole Travis Yost flap where Yost said Melnyk was piling debt on the Sens to bail out some of his struggling pharmaceutical start ups.

I thought all that was in the past though as Forbes had his worth at 1.3 billion or so
but if those companies are penny stocks now, its no wonder the Sens are a budget team.

But at least we know that there are people with deep pockets who want to buy the team or maybe partner with him.

 

[Stylizer1]

Melnyk has had problems with the Ontario securities Commission and was fined and was supposed to be banned for awhile from trading I believe.

Then there was the whole Travis Yost flap where Yost said Melnyk was piling debt on the Sens to bail out some of his struggling pharmaceutical start ups.

I thought all that was in the past though as Forbes had his worth at 1.3 billion or so
but if those companies are penny stocks now, its no wonder the Sens are a budget team.

But at least we know that there are people with deep pockets who want to buy the team or maybe partner with him.

Bad judgement. Seems like when he is the one in charge bad things happen. Once he left Biovail they took off.

 

[MiscBrah]

I hope he uses the Oppression Remedy.

Ontario Business Corporations Act

Oppression remedy
248. (1) A complainant and, in the case of an offering corporation, the Commission may apply to the court for an order under this section. 1994, c. 27, s. 71 (33).

Idem
(2) Where, upon an application under subsection (1), the court is satisfied that in respect of a corporation or any of its affiliates,

(a) any act or omission of the corporation or any of its affiliates effects or threatens to effect a result;

(b) the business or affairs of the corporation or any of its affiliates are, have been or are threatened to be carried on or conducted in a manner; or

(c) the powers of the directors of the corporation or any of its affiliates are, have been or are threatened to be exercised in a manner,

that is oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer of the corporation, the court may make an order to rectify the matters complained of. R.S.O. 1990, c. B.16, s. 248 (2).

 

[Tuna99]

Does anything positive ever happen to this guy - he even gets given a liver on his death bed by a Sens fan and his first news conference is him being angry that he might lose hot dog quality control and angry that someone might want to buy his team because he likes to skate around whenever he wants.

This guy would be negative inheaven

Guys a train wreck. Just a negative, angry guy who never seems satisfied in life

 

[Mingus Dew]

I hope he uses the Oppression Remedy.

Ontario Business Corporations Act

Oppression remedy
248. (1) A complainant and, in the case of an offering corporation, the Commission may apply to the court for an order under this section. 1994, c. 27, s. 71 (33).

Idem
(2) Where, upon an application under subsection (1), the court is satisfied that in respect of a corporation or any of its affiliates,

(a) any act or omission of the corporation or any of its affiliates effects or threatens to effect a result;

(b) the business or affairs of the corporation or any of its affiliates are, have been or are threatened to be carried on or conducted in a manner; or

(c) the powers of the directors of the corporation or any of its affiliates are, have been or are threatened to be exercised in a manner,

that is oppressive or unfairly prejudicial to or that unfairly disregards the interests of any security holder, creditor, director or officer of the corporation, the court may make an order to rectify the matters complained of. R.S.O. 1990, c. B.16, s. 248 (2).

In Canadian jurisdictions it's typical to bring both a derivative and an oppression claim. In reality though the oppression remedy does all the work and has basically rendered the derivative remedy redundant.

After the BCE case, though, oppression is difficult to prove (bondholders got absolutely screwed in that deal and the SCC still held that oppression hadn't technically occurred).

I'm not a lawyer and my knowledge of the CBCA/OBCA is limited to what I learned in law school. But it sounds like this pharma company's value went to hell when it became clear that the drug(s) in their development pipeline weren't going to be approved and/or meet revenue projections. This is basically how companies are valued in this industry, so the stock price tanking makes sense.

Unless the directing minds of the corporation were essentially clueless and negligent, Melnyk has no case. Corporate law is not about reimbursing shareholders after they make poor investments or the market turns against them.

 

[OgieO]

Then there was the whole Travis Yost flap where Yost said Melnyk was piling debt on the Sens to bail out some of his struggling pharmaceutical start ups.

That was pretty dangerous reporting by Yost if he did that. You can't simply pile on debt of one company to another to bail the first company out. That's the ABC's of the Enron debacle.

If he actually accused Melnyk of pushing debt of the pharaceuticals to the Sens financial statements he indirectly accused him of fraud. I didn't read Yost's article so not confirming he did or did - just replying based on your post.

 

[pepty]

That was pretty dangerous reporting by Yost if he did that. You can't simply pile on debt of one company to another to bail the first company out. That's the ABC's of the Enron debacle.

If he actually accused Melnyk of pushing debt of the pharaceuticals to the Sens financial statements he indirectly accused him of fraud. I didn't read Yost's article so not confirming he did or did - just replying based on your post.

That's pretty well what he did using pubic information regarding loans taken out against the Sens and money bailing out his pharma companies.There was a flap about it. But then after a series of cyber attacks he stopped writing about it .

However as it happens, on another matter, Uncle Eugene was charged with fraud by the Ontario Securities Commission and the US SEC.

http://www.sportsnet.ca/hockey/nhl/melnyk-fraud/

"Ottawa Senators owner Eugene Melnyk and three Biovail company executives have been charged with accounting fraud by Canadian and U.S. regulators.

He wasn't found guilty of fraud but his" actions as chairman and chief executive of Biovail were “contrary to the public interest.”

http://business.financialpost.com/news/fp-street/melnyk-could-face-5-year-ban-from-the-boardroom

Eugene Melnyk, owner of the Ottawa Senators and former chairman of pharmaceutical giant Biovail Corp., was banned for five years from senior roles at public companies by a panel of the Ontario Securities Commission (OSC).

In addition to the restrictions on serving as an officer or director, he will also be formally reprimanded by the OSC and pay $565,000 towards the cost of the regulatory probe into his conduct.

 

[Nac Mac Feegle]

He was doing a lot of strange re-financing on the Sens and the debt. He essentially hasn't paid anything on it (considering the amount of time he has owned this team).

 

[topshelf15]

He was doing a lot of strange re-financing on the Sens and the debt. He essentially hasn't paid anything on it (considering the amount of time he has owned this team).

He has borrowed some serious dollars against a team that loses as much he claims we do .Really would like to know the banks that give him so much cash against a non profit entity like the Sens

 

[Qward]

I have a feeling this is a ploy to gain controlling interest in the company. They are close to getting their product through the final stages of FDA approval and once that happens the stocks will increase.

 

[Mingus Dew]

I have a feeling this is a ploy to gain controlling interest in the company. They are close to getting their product through the final stages of FDA approval and once that happens the stocks will increase.

If a lucrative drug was about to be approved then that information would already be priced in by the market.

 

[Qward]

If a lucrative drug was about to be approved then that information would already be priced in by the market.

They have been stuck at that stage for couple years now. I am tacking their stock prices to see what happens in the next coming months. should be interesting.

 

[Mingus Dew]

Yeah it's definitely interesting. But the rock-bottom stock price suggests that the market does not anticipate successful trials and/or respectable peak revenue projections. There could obviously be some news that changes this and leads to a price hike, and Melnyk may have an inside track on some such information.

 

[BonkTastic]

... the rock-bottom stock price suggests that the market does not anticipate successful trials and/or respectable peak revenue projections.

This.

There's a reason it's trading at nine cents a share. When they were optimistic about the "Viagra for Women" Nasal Spray a couple of years ago, shares were trading at about $0.80.


That being said, at $0.09, there's not much room for this stock to get any lower. It's a risky buy, but I could see how some speculators might be interested in the stock at this low price. Heck, it was trading at $0.70 per share as recently as this past July. Literally any positive news might be enough to push the stock into the twenty-five cent range.

 

[pepty]

The plot thickens.It seems his 5 year banning from control of the company plays into it and is being used against him.

http://www.theglobeandmail.com/repo...start-acerus-pharmaceuticals/article29193342/

 

[kilroy]

The plot thickens.It seems his 5 year banning from control of the company plays into it and is being used against him.

http://www.theglobeandmail.com/repo...start-acerus-pharmaceuticals/article29193342/

And that's a paywall.

 

[thammias]

If we didn't have the crazy owner's overshooting their wealth like Firestone, Bryden and Melnyk by owning a team.... Ottawa wouldn't have an NHL team. They might not be ideal or perfect... But at least they figured out how to get us a team and keep it here. So it is hard for me to really dislike ownership. Sure a big fish would be nice... But at least we have a team. A relatively decent one for most of our history.

This so much. I don't see any smart business owner looking at small market Ottawa and thinking owning the Senators with a rink 30 km outside the centre core is a smart investment, unless ego is involved. Their ego is the only reason Ottawa has a team right now. Hopefully a new rink at Lebreton may fix this issue.

 

[Mingus Dew]

I would imagine that most NHL teams are a poor investment. This business is about more than ROI and always will be.

 

[tony d]

Yeah, I think the time has come for Melnyk to sell the team.

 

[pepty]

And that's a paywall.

Sorry
Here is some of the info:

Life is rarely easy for a pharmaceutical company in its infancy and Trimel was no exception. Documents show that the company had negative working capital of $13.9-million at 2015 year end and racked up losses of $81-million over the past three years. Since inception, the company has experienced negative operating cash flow and it now carries a “going concern†warning in its filings.

Only recently has it started to generate revenue from the commercialization of its products

When revenue-challenged Trimel decided to spend money to change its corporate name and stock ticker symbol last year to Acerus, some wondered how much the friction with Mr. Melnyk had grown.

The name Trimel was hatched by Mr. Melnyk and refers to the three brothers in his family. Changing it for no obvious reason at a time the company was pressed for cash seems like it just wanted to bury all vestiges of Mr. Melnyk from its corporate identity. As one industry source put it: “It’s kind of spiteful, right?†Acerus spokeswoman Tiana DiMichele said the name change was made in part to “better reflect our vision and values.â€

The company also scheduled its annual meeting of shareholders for April 27, 2016, instead of in June as in years past. The April date is mere days before Mr. Melnyk’s OSC ban is set to expire and means he can’t nominate himself or any one else as directors during this year’s meeting. Ms. DiMichele did not respond to a question about the date change.

 

[source]

What is the alleged wrongdoing?

 

[pepty]

What is the alleged wrongdoing?

http://www.sportsnet.ca/hockey/nhl/melnyk-fraud/


The Ontario Securities Commission and the U.S. Securities and Exchange Commission are alleging Biovail filed inaccurate financial statements and misled investors in recent years, writes the Canadian Press.

“Biovail and senior executives engaged in a pattern of systemic, chronic fraud that impacted its public filings of quarterly and annual reports over the course of four years,†Mark Schonfeld, director of the SEC’s New York regional office, said in a statement.

“In an effort to conceal the fraud, Biovail’s senior officers intentionally misled the company’s auditors and the investing public, showing their complete disregard for their responsibilities to shareholders.â€

 

[Stylizer1]

http://www.sportsnet.ca/hockey/nhl/melnyk-fraud/


The Ontario Securities Commission and the U.S. Securities and Exchange Commission are alleging Biovail filed inaccurate financial statements and misled investors in recent years, writes the Canadian Press.

“Biovail and senior executives engaged in a pattern of systemic, chronic fraud that impacted its public filings of quarterly and annual reports over the course of four years,†Mark Schonfeld, director of the SEC’s New York regional office, said in a statement.

“In an effort to conceal the fraud, Biovail’s senior officers intentionally misled the company’s auditors and the investing public, showing their complete disregard for their responsibilities to shareholders.â€

He ain't no Bobby Axelrod, that's for sure.

 

[Qward]

This.

There's a reason it's trading at nine cents a share. When they were optimistic about the "Viagra for Women" Nasal Spray a couple of years ago, shares were trading at about $0.80.


That being said, at $0.09, there's not much room for this stock to get any lower. It's a risky buy, but I could see how some speculators might be interested in the stock at this low price. Heck, it was trading at $0.70 per share as recently as this past July. Literally any positive news might be enough to push the stock into the twenty-five cent range.

Their IPO saw them come in at 0.11 suggesting that is their value. Melnyk investing $30M grew their equity shooting their prices up.