Looks to me like the demand for supporting evidence to justify stenting is just going to increase, and Volcano just beat back the only real threat of being chased from that market. Maybe that isn't enough to justify a boom, but why the continuing drop?
Sure, OCT makes beautiful pictures, but it isn't cost effective (and for all anyone knows, Volcano may be in it next week)
Ok, I've seen this kind of thing before, but it doesn't make a whole lot of sense. The notes convert a bit over $32 a share and the warrants are for purchase over $37 a share. And since both are issued pursuant to a shelf registration, the dilution ought to have been allowed for already. And a decent chunk of proceeds will go to retire a higher-interest (and also convertible, at a lower price) bond issue.
We know that Volcano internally has a lot of exposure to OCT (partly acquired with Cardio Spectra), but ongoing litigation has caused them to be pretty quiet in public for the last two years.