I KNOW I'm an unsophisticated investor, and I know that because in the 3 years since I've invested in this company I've LOST money. Not exactly bragging rights. However, it's a slightly bigger issue for me as I deal with blindness also. Is there some method to the madness of adding a billion shares? Either in fact or in theory? With a 100 to 1 reverse split, it narrows that to a million additional shares. Is that being done so a big pharma or someone else can #$%$ up a big pile? Or is it just because ACTC debt outweighs the value of the company and they are in dire straights? Please, only informed educated answers-which leaves out about 3/4 of the people on here. No I don't care about Muslim this or Obama that, try to keep it Blog Topic Specific, besides OBAMA WON !!! LOL.
demand for shares? Given assumed favorable results of clinical trials which will be releasted in conjunction with share issue or reverse split the demand for shares is certain.
When merger or acquisition talk heats up major funds will rush in to profit. Share demand and funding to complete clinical trials or to commercialize actcs technology if orphan ststus is granted would be assured overnight.
Buying additional shares at reasonable prices could be impossible. Most likely actc has or will soon be talking and dealing with a entirely different class of investment funds. IMO the entire transition as seen from a independant investors viewpoint will take less than five trading days.
You're right. the high number of new authorized shares suggests they are going to go for a high ratio reverse split, thus diminishing the interest of existing shareholders and substituting the interest of institutional investors or company insiders as beneficiaries. The insiders and institutions will continue to dump shares as they have been, continuing to suppress the value of existing shares. The adverse effect of this plan can be seen by the reaction of the stock price today. There was too much BS in the update about "value inflection points" and publication in peer reviewed journals. Half of what's printed in these journals is industry friendly soft-soap anyway. If there is something positive happening with the trials then the company's obligation is to inform the shareholders, the owners of the company. That will increase the share value for existing investors. This plan is typical Wall Street crappola.
Cam, I agree. I would just add that this is a hedge by Gary (the hedge fund guy) against a failed RS, and if true, then there is absolutely no partnership in the works (needs shares to raise money to fund trials). That seems likely since for the better part of a year Gary Rabin has been talking about going at this alone and not sharing the tech because he doesn't want to give away value. This guy is a jackass. If he shifted focus on revenue generation, rather than stock manipulation, we being going somewhere. After all, isn't there a $30b market out there. If so,and if the science is there, who cares about 2 or 3 billion shares os? The guy should partner up and let a good suitor guide us through trials. Good grief, this think is easily 2 bucks with the right partner.
They are selling these shares to raise cash - Lincoln Park is a perfect example. But once they run out of authorized shares they need to ask the shareholders to okay issuing new ones - thats the dilution that we've been living with.
A reverse split reduces the number of shares. If they split it 1 for 3 you will have one third less shares than you had before. If you thought you were going to make a lot of money with this stock when they succeed in curing the blindness, you will not now.