>> The press release dow not say how many shares are being offered and the breakdown between new and existing shares. Anyone know the amounts? <<
The SEC filing (Form 424B5) did not specify the number of shares on the cover, but if you dig through it, they provide an estimated dilution to existing shareholders based upon the issuance of 2.2 million shares (at $8.86 which was the closing price on Monday). This is a little less than 10% of the total outstanding shares (23 million at 3/31/10). All shares would be new shares. No shares are being sold by insiders.
The bottom line is these shares are being purchased by large institutions and I highly doubt they'd be putting up $17-$18 million based upon an expected rejection by the FDA. My guess is management DOES expect approval and anticipates a significant capital need to roll this out and did not want to be hamstrung by poor market conditions should the market really freefall this summer thanks to a possible global slowdown. Issuing about 10% new shares to ensure you had adequate capital, even if the stock price isn't optimal, seems like a pretty good move. This should give them roughly $40 million by the time the August panel meeting rolls around.