This excerpt taken from the ABII 8-K filed Nov 8, 2007.
Because there has not been any public market for our common stock, the market price and trading volume of our common stock may be volatile.
Prior to the separation, there has been no trading market for our common stock. Accordingly, we cannot predict the extent to which investors interest will lead to a liquid trading market or whether and to what extent the market price of our common stock will be volatile. Abraxis BioScience believes that the separation offers its stockholders the greatest long-term value. However, the combined trading prices of New APP common stock and our common stock after the separation may be greater than, equal to or less than the trading price of Abraxis BioScience common stock prior to the separation. The market price of our common stock could fluctuate significantly for many reasons, including in response to the risk factors listed in this information statement or for reasons unrelated to our specific performance such as reports by industry analysts, investor perceptions or negative announcements by our competitors regarding their own performance, as well as general economic and industry conditions. In addition, when the market price of a companys common stock drops significantly, stockholders often initiate securities class action lawsuits against that company. A lawsuit against us, regardless of merit, could cause us to incur substantial costs and could divert the time and attention of our management and other resources.
Although our common stock has been approved for listing on the Nasdaq Global Market, there is no existing market for our common stock. We cannot assure you as to the trading prices for our common stock after trading begins. Until our common stock is fully distributed and an orderly market develops, the trading prices for our common stock may be adversely affected by the sale of a substantial number of shares. Prices for our common stock may also be influenced by the depth and liquidity of the market for our common stock, investor perceptions about us and our business, our future financial results, the absence of cash dividends on our common stock and general economic and market conditions. In addition, the smaller size of our market capitalization after the separation and distribution compared to the market capitalization of Abraxis BioScience prior to the separation and distribution may result in the loss of stock research analyst coverage of us. The absence of analyst coverage makes it difficult for a company to find and hold a stock market following.
After the distribution, many of our stockholders may hold odd lots or blocks of less than 100 shares of our common stock. An investor selling an odd lot may be required to pay a higher commission rate than an investor selling round lots or blocks of 100 shares.