Extreme dilution it is. Wow! 112 million shares to share the pie is huge, not so good I think, but THLD will get proceeds for TH-302 and make it to a Phase 2 trial for this drug on their own. No partner for TH-302 and the money is on hand to buy more time for the company and shareholders, maybe 2010.
Actual cash on hand (end of june)= $13.5 Mill. Net proceeds from the offering = $17.0 Mill. Net proceeds from warrants @.39 = $ 8.5 Mill
TOTAL= $39 Million OLD + NEW SHARES= 112.76 Mill TOTAL CASH/SHARE= .35 Aprox
Makes me wanna believe the hold company was sold for a missery of .35 cents to the "same old investors" that once funded THLD for the first failed drug two or three years ago (TH-070), why sell it to someone else if they are their old well known frustraded pals?, of course they know something good related to Phase 1 TH-302 results we dont know yet, and the best time to do that WAS NOW?.... So TH-302 remains in THLD and maybe we´ll just sell 2DG-GLUFOS to other pharma and use those proceeds to fund a phase 3 for TH-302. NO PARTNERSHIP FOR NOW?
I think what has happened is they are raising more cash through something similar to a shelf or secondary offering. The existing shares will still trade, and the implicit value is 34 cents, but this dilutes the common. Also, the "new group of investors" get warrants.
If this is all correct, I am okay with the dilution. First, the group is paying 34 cents, so I don't see why my shares will suddenly drop. Second, this funding will see us through to the end hopefully. And hopefully the end is bright.
That said, is this how everyone else on this board interprets this news?
I do interpret this as good news, there´s money now but at a high price for existing shareholders just as Tred thinks. I did not like the warrants issue because it trends to manipulate PPS in most companies in the market IMO.
The next step could be a PS regarding P1 TH-302 results due since last June to hold PPS over .30 and then the reverse split (3x1) to keep PPS above $1 to complain with the Nasdaq rules and a total # of 37.5 million new shares.
PPS for tomorrow and short term?... perhaps well below .30s and then back to .40s level after 2DG and TH-302 Phase 1 results are published and soon a 3x1 reverse split. Folks I think this is the beginning of a very long story of how to be a millionare. But it will take us several years. LOOONG YEARS!