It's good to have a Big Name Banker that owns a lot of the underwritee's shares
We all know the immense value of a Big Name banker. Without one, it is absolutely impossible to achieve maximum valuations because very few investors will commit to any company no matter how good the story is. Ampio is no exception and the unbelievably and extremely low volume in the face of all the great news from this company is all the proof any reasonable investor needs to confirm this fact. Also, the exceptionally low price when compared to companies like AEGR and ACAD with inferior pipelines also confirms that Ampio is extremely undervalued and if it were priced even at the same market cap of these two companies, AMPE would be selling over $50.
Why the difference?
Take a look at AEGR and ACAD.
They both have big name bankers and they both have solid PR.
Take a look at Ampio . . . NO BIG INVESTMENT Banker AND NO PR.
Management will argue that the big bankers want too much stock.
Sorry but that is poor reasoning because you WANT YOUR BANKER TO HAVE LOTS OF STOCK SO THEY HAVE THE INCENTIVE TO MAXIMIZE PRICES AND VALUES. IF THEY HAVE LITTLE STOCK, THEY HAVE LITTLE INTEREST TO PROMOTE SHARES.
What do you want . . . 100% of a $10 or $20 stock . . . or 70% of a $300+ stock?
Investment bankers don't "get stock" in a company they underwrite, they just get a fee for selling shares to outside investors. For a deal of this size the fee might be 6.5% of the gross. If Ampio cut a banker out of the deal and "did it themselves" they would save the fee. = less dilution. (The wording of the press release mentions no banker. This doesn't necessarily mean there was not one, only that this wasn't disclosed.)
No reference is made to the last $25 million dollar raise without a banker.
Investment Bankers do charge a percentage fee of what they raise BUT they also try to get as many warrants as possible and this is most likely the stumbling block that is giving management heartburn about working with a big name banker. they are all going to require a big chunk but that is actually in the best interests of the company to have a big brother who will always promote your shares and maximize valuation. Shareholders wind up way ahead of the game with a big banker.