Out of the blue, in early March, the company announced that their partnership arrangement related to wound care had been amicably terminated. During the recent CC, the CEO indicated that he was pleased with the speed the Luna program was developing. So, you put this together with the push they will get in the marketplace from Pillar, and you begin to see a compounding justification for a sizable increase in both the salesforce and inventory. As with all of you I'm trying to be realistic in assessing this dilution, but I simply cannot come up with any meaningful negative considerations. The only potential black cloud that could be lurking over the horizon is they use this money to make a bad acquisition. This management team seems too smart to do something that isn't well thought out.
One other possibility. The company and Cannacord already know that the MC Anderson study is going to shine a bright positive light on the use of Spy in breast reconstruction surgery. So, they give their historical Institutional supporters the opportunity to load up more shares at a reasonable price. This makes sense from the perspective that they already have $37 million in cash which is more then enough money to continue to expand the salesforce and build inventory. It wouldn't be the first time Institutions received such preferential treatment.
Thanks for your earlier posts!
I like the way you're connecting the dots....breaking up with KCI, talking up the LUNA launch, and now beefing up the available cash for a major sales push. At the cc, Arun mentioned a single sales force to cover SPY in all its manifestations. Should be an exciting ride as SPY becomes the new standard of care.
btw, I also am indebted to Fish for learning about Nvdq early on.