It's Novartis who estimates when the trial should end, and they knew about the delay when the last update was done for the clinical trials database. Certainly they can revise it again, but I don't think Novartis doesn't know what it's doing.
I'm actually 73 and never was a broker, just worked with one for years. We still occasionally chat with one another, but he's been retired for some time, just as I have. Haven't made a fortune in stocks, but have learned something about how these companies operate over time.
As most here know, I'm just one year past a stem cell transplant for leukemia, and I've also been a big supporter of City of Hope even though their have been some complications. I believe complications would occur anywhere, but not all that many places would do stem cells for someone my age.
As for defending companies, I like to think of what's behind their actions. In the case of GNVC today, I've got to believe that while the company may want and expect partnerships later this year that could bring in funds, they know such things are never certain. The longer they wait, the weaker their financial position, i.e. instead of getting more than current prices for new shares, they'd have to take less. Sure, I'd rather they raised funds when the price was higher, but can understand their temptation to do it now when the opportunity was presented.
It's very easy to criticize management when share price doesn't move up. I try to look at what they're trying to do. I certainly don't know if hearing, RSV, malaria, etc, etc efforts will be successful. Frankly, any one or two of them being successful will create great wealth for shareholders. It may take years, but remember, the former CEO was going to dissolve GNVC, Dough kept it together and the science seems to be advancing. In time I believe the price will adjust as the science is accepted.
Gary has a point of view and good arguments. I understand your curiosity about him, but his age has nothing to do with his credibility... (unless he's actually a very well-spoken 16 yr old.)
Gary, your definition of the word "institution" is humorous. No legit institutions bought this. Including the warrants, the dilutions is a staggering 54% for a stinking five million bucks. If they had law suits before, wait till you see what this brings. And like someone said earlier. No one wants anything they can bring to the table, or they wouldn't be doing this.
But it should make you happy: now they can do another reverse split to keep it above a dollar. So divide your holdings by five or ten, cause here it comes!
It's clear the Institution buying in recognizes the value of the company, they're paying substantially more than the stock was trading for before news of the offering hit. I believe Doug presented a good case for the brokerage to arrange such a sale, even the warrants are priced above the current stock price, so it's not like they're getting something for nothing. I believe they know more than any of us do, and they're willing to pay nearly a dollar a share for the right to buy over 5 million shares.
As I stated earlier, I'd have preferred if they'd waited till after the price was above $1 and we were in compliance with the Nasdaq, but hopefully they know what's coming and will get us there.
While the market acted negatively to the announcement, GNVC will be nearly 50% owned by Institutions, this is really rare for companies trading at under $1 and I'm sure those Institution's don't believe it will be there much longer. As always, JMHO.
Sentiment: Strong Buy
Gary - why are you such a GNVC apologist? What exactly did you do at the full service brokerage? Were you successful? Tell us a little about yourself and build your credibility because currently all you are in most of our eyes is a GNVC cheerleader. Sorry, but it's true. How old are you?
No company likes to use all their cash before financing, now they probably can say they have sufficient cash to go into 2018, but know they'll want to have additional cash coming in by this time in 2017.
While I would have preferred they waited until Nasdaq compliance was established, it's also clear that when a deal such as this is put together, if they don't take it, they might not get it later. I want to hear what the company has to say about both the financing, and the restart of the trial, as well as how they're planning to reach Nasdaq compliance.
What's sad about such financial arrangements is that we, the small investors, are always completely shut out of being able to get them. Years ago, when I was with a full service brokerage, I was frequently offered shares at the issue price when companies I had investments in were doing new share offerings. Now it seems Institutions take all such offerings, and almost always gain warrants as well as the stock. At least this time they're paying more than the market price for both the stock, and the warrants they're receiving, but it's still a deal I'd have taken if my broker offered me part of the action.
With under 30 million shares outstanding when this is all done I don't see a problem, but the company needs to convince investors that it warrants a $30 million market cap to reach the $1 a share price required by the Nasdaq. Nothing would lower the market cap faster than even the mention of the possibility of doing another reverse split. The company can request another 6 months extension if they don't meet the Nasdaq compliance guidelines, that should be their fall back position.
Good point. The way I understand it, the "at-market-price" offer is one of the least desperate ways of financing operations. But I agree. For how predicable GNVC's cash flow should be for the next couple years, it seems like they could have done better.
AND Swirsky is saying they hope to resume the trial within a few months. They'll never finish Phase II in 2017.
Why did they do this offering so early? We basically already have the news about the trial continuation and I don't think the Fed's permission will improve the stock price much, other than a pop and a drop. Delisting might occur in 3 months if we can't get ten days over a buck. I'm starting to not like this.
we all, myself included, thought this headline would bring us back to the $1.50 area, NOT EVEN CLOSE !!
Genvec has tipped off the "right investors" for a long time now. Take a look at the stock price history and when headlines and PR's come out, I think you will find it very interesting.
For a company that has not accomplished anything but paper science since 1990's
they have stayed in business a long time !!
The same address has stepped on the price.
After DSMB news would have held the price above $ 1, perhaps looking over 2 or 3 dollars dimensions.
We have three alternatives:
-The Suicide. It requires desperate situation. Multiple reasons.
-Regalar Our positions. It requires philanthropic attitude and personal material wealth
-Follow Averaging. It requires money, health, patience and youth.
Genvec is a nest of corruption. There are always strange operations and increased volume before knowing the news.
Insiders bought before the news of DSMB they knew in advance.
Then they sold because they knew the news dilution.
Now they will buy back a little price and if you want to take control.
It could be inferred news dilution.
NO could be inferred news DSMB
A few months ago the management proposed a mechanism to prevent the takeover.
Today five million 33% of the capital and the option premium-free for six years and about 3.75 M of additional shares paying 0.83 for each is acquired.
On the conference call, didn't he say he had papers out with pharma companies? Or something to that effect? (I'm eliminating my "strong buy" Long-Term Sentiment Disclosure:)
Today's move is a prove that GNVC has no material deals in the pipeline.
This brings the share float to 27+ million share float.
Price might settle in the $0.50 range if we are lucky.
This is over.........Swirsky might be able to milk it for salary and bonus into mid 2018.
GAME OVER for the rest.
Sentiment: Strong Sell
I actually like the terms of the offering, I've seen much worse. The offer price is above where we're trading now and the warrants issued with each share are to buy 3/4 of a share in the future at 0.83, which translates to $1.10 per share. I was afraid of what an offering would do to the current price, but this might actually drive the price up! We'll see if I'm right or not very soon ;)