...but most just took it in stride. An 'average volume' dip is just a buying opportunity and a contract to sell existing shares (not a new shelf agreement) is not like a new credit line. They want market value for their shares and the contract will help them obtain that.
This news should not have moved the price...
Hi Howard. Hope all is well. If I wasn't into this stock to the extent that I am into it, I would buy more. But now I am sitting tight, worried about one event. 011 passing. 50/50 or 60/40 or 40/60. apart from that, all seems well. nice first day of summer. talk soon.
howard, Unfortunately OXGI is a micro cap bio tech. and it aint getting a whole lot of love from Wall street. I have seen these kind of at mkt financings before with other small cap bio techs. Oxgi should be generating a fair bit of volume inducing news flow over the next 12 months some of it will be met by this deal.
I called IR about this. I was told that OGXI would issue new shares for sale under this arrangement only if the stock price was significantly higher than it is now -- perhaps in anticipation of SYNERGY results -- and this deal would allow them to sell a large block to an institutional investor that didn't want to buy on the open market because of the stock's limited liquidity. I was told that the arrangement allows them to issue new shares without having to do the road show that's involved with a private placement and without having to discount the shares below the market price.
I'm still a little concerned that the overhang of this deal may tend to limit any increase in the pps ahead of SYNERGY results. IR said they didn't think it would because the company has enough cash to last into 2015 and is under no pressure to make use of the arrangement unless the circumstances are very favorable.