They aren't diluting (yet). They merely set up the shelf, so they are ready to raise. My guess is that (like most of us here) they are confident of a win, and the resultant share bump. But, knowing it will take a while to get any money from SIGA, they will do a raise at the top of that bump, when it's the most advantageous. Nothing out of the ordinary, this is how it happens every day.
Proof of this is the price action so far this morning. Virtually no effect on the share price. People need to learn about these things, and stop being so ignorant of how these things work.
Zack, I'll honestly say I don't know what the guy at cantor is doing right at this moment. The shelf was set up on July 7th 2011 with a not to exceed amount of $100,000,000, so they have been ready for sometime now. With last night's authorization, Cantor can sell whenever they want.
If I was PIP and thought that I had a good chance of winning the case, I would still raise some cash now. It is PIP's fiduciary responsibility to it's shareholders to consider all potential outcomes and they understand that there is the possibility of not winning the case and need to plan for that scenario.
Jimbo, if PIP wins I think they will still issue some portion of the balance of the $15M as they are now realizing that Siga will not be giving them a dime until the contract is fulfilled...what was this date 2015?
"On March 25, 2013, PharmAthene, Inc. (the "Company") entered into a Controlled Equity OfferingSM Sales Agreement (the "Agreement") with Cantor Fitzgerald & Co., as sales agent ("Cantor"), pursuant to which the Company may offer and sell, from time to time, through Cantor shares of common stock, par value $0.0001 per share (the "Common Stock"), of the Company having an aggregate offering price of up to $15.0 million (the "Shares"). The Company intends to use the net proceeds from the offering, if any, for general corporate purposes, which may include working capital, research and development expenses, general and administrative expenses, and capital expenditures."
The Company is not obligated to sell any Shares under the Agreement. Subject to the terms and conditions of the Agreement, Cantor will use commercially reasonable efforts, consistent with its normal trading and sales practices and applicable state and federal law, rules and regulations and the rules of NYSE MKT, to sell Shares from time to time based upon the Company's instructions.
Since you guys post half truths(ONLY THE NEGATIVE) maybe they win the case go to 8 sell 2 million and dilute only by 4% and have an extra 16 million on hand as lawyers back siga into a corner since no matter what you post the will have to pay no matter what accounting tricks you guys think will be used,