The sale of 1,000,000 shares to Azimuth Opportunity (that the sale was just under this round number raises the question of what legal trigger was being skirted) at $5 per share stinks to high heaven: Affymax has approximately $170 million in cash on its balance sheet...a lousy $4.85 million on top of that will have no material impact on Affymax's capacity to go forward with its commercialization of Hematide. It is a ruse to give away roughly 4% of the company for a less than liquidation price. Present shareholders (anyone not Azimuth) have been defrauded as the current use of the equity facility was excluded from the terms of the facility as announced by Affymax in September of 2009.
The only explanation with any sound logic behind it, as the sale was done at Affymax's discretion, yet appears so little to its benefit and credit, is that somehow the Board, CFO and CEO of Affymax are beholden to, or seek to benefit in the future from, funds currently short AFFY, a weak but low float stock to whom an additional one million shares offered into the market at a near all time low of $5 would be an enormous benefit. It is difficult to see who benefits from this sale in any substantial way EXCEPT funds currently short the stock--certainly not Affymax, for whom an additional $4.5 million is as nothing at this point (upon submission of the NDA to which they and Takeda are both committed Affymax will recieve a $30 million payment..and have a rich cash balance already!)
As fictional Holmes would observe: ...eliminate the impossible, whatever remains, no matter how improbable...must be true.
arlene's veil attempt to change the negative investor sentiment via the stock sale is/has caused more pessimism. and not to mention the undue/due skepticism of hematide being approved by the fda and the takeda alliance.
boom or bust. take your pick.
Affymax Secures $60 Million Issuer Managed Equity Facility with Azimuth Opportunity, Ltd.
PALO ALTO, Calif., Sep 25, 2009 (BUSINESS WIRE) -- Affymax, Inc. (Nasdaq:AFFY) today announced that it has obtained an issuer managed equity facility under which it may sell up to $60 million of its registered common stock to Azimuth Opportunity, Ltd. Affymax is not obligated to utilize any of the facility, which has a term of 24 months.
"While our cash position is sufficient to allow us to complete the Phase 3 clinical trial program for Hematide, this equity facility provides prudent financing flexibility as we begin preparation for potential commercial launch of Hematide in the renal anemia market," said Paul Cleveland, executive vice president and chief financial officer of Affymax.
From time to time over the term of the Purchase Agreement, and at Affymax's sole discretion, Affymax may present, subject to certain conditions, Azimuth with draw down notices requiring Azimuth to purchase a specified dollar amount of shares of its common stock, based on a pre-negotiated discount to the volume weighted average price over a preceding period of trading days.
Now you know they expedited the sale of stock at $5 after manipulating the stock down to that level...the whole episode stinks of securities fraud. Are these shares now to be partly distributed to the funds that shorted AFFY for ease of covering those positions? time to call the SEC
..."equity facility under which it may sell up to $60 million of its registered common stock to Azimuth Opportunity, Ltd. Affymax is not obligated to utilize any of the facility, which has a term of 24 months.
"While our cash position is sufficient to allow us to complete the Phase 3 clinical trial program for Hematide, this equity facility provides prudent financing flexibility as we begin preparation for potential commercial launch of Hematide in the renal anemia market," said Paul Cleveland, executive vice president and chief financial officer of Affymax."
HOW F-ING PRUDENT IS THIS USE OF THE EQUITY FACILITY????????????? AT THIS RATE AFFYMAX MANAGEMENT WILL SELL A CONTROLLING INTEREST IN THE COMPANY FOR A LOUSY $60 MILLION F-ING BUCKS!!!!!!!
IS ARLENE F-ING INSANE?????????? CAN WE LYNCH HER NOW??????????? OR DO WE HAVE TO HAVE AN ADDITIONAL PHASE 3 TRIAL?
So basically 5 mill sold, and 55 more millions to go hypothetically.... That's really NICE! Have you done the math and see where it would be when compared to the total outstanding hsares? At F-I-V-E dollars per share?
I don't want to hear any more BS from anyone about the 'BOOK VALUE' of 6.50+ the BOOK Value at this point is BS. This stock should be trading under 5 as its STEET VALUE is worth about that if we're lucky.
In all my years of investing this is the most shady and unethical deal I've have seen because of how much cash affy is and THEY caused there 52 week low in stock by blowing it up . Even more shady was the timing: they release jnj news and Arlene says that this how no bearing on the drug then the company bloodbath the stock to 5$. The fund who did the deal was worst seller I've seen in 25years. Arlene should be fired just on this whole fiasco.
Has anybody called the company?
you bring up a good point about the 999,999. something\something shares being off loaded to Azimuth at FIVE bucks. Why not 1mill? Makes no sence at all. All I can say is that Affy is starting to stink more and more as the days go by and I am already looking for an exit strategy. I wouldn't be surprised if we go below 5 again by Friday. This stock can't hold more than two days of gain. Gives it all back all the time!
nobody can explain why they did sell the stock at this low price but after the news the stock went up so we don't know what is behind the door i wish if someone could find out and post on board thanks