Can someone educate me: the $20 million gross proceeds seems low. While I understand people facilitating the offering need to make money, does the Company receive more money upon exercise of the warrants?
Biojax, I have a feeling that no matter what sort of announcement issued from the company (including, perhaps, nuclear attack on its facilities), you would find something highly optimistic to say about it. While I'm not drawing an analogy, I'm reminded of the guy who fell off a skyscraper roof and called into office windows on the way down, "All right so far!" Wasn't yesterday the time to buy at $2.22? :)
Anyway, let's all hang in and not get shaken out by short-term traders.
I'm pretty disappointed to see another capital raise so soon given their solid cash position and the potential for milestone payments. Entering the position a few weeks back and then adding after the Q3 results I wrestled with the huge upside vs potential dilution. My thinking was any dilution would be modest vs the huge upside and the risk of missing a big run up into the trial results. As an investor, I'm actually happy that they raised via an offering rather than partnering and potentially giving up far more upside. I wish they had held off for a higher stock price though before diluting. If they could have held out for the trial results any raise would be at far higher prices on good news but I can understand that management needs to hedge their bets somewhat.
Given that the Aspire deal was already in place, they seem to now want a lot more cash for the short-term: so I'm sure we'll be soon hearing about their plans. Admittedly, this seems to go against hearing a short-term deal that would include a cash infusion, although I could be wrong...