At 10 cents a share they will flop this back and forth endlessly
Once the trade goes thru, this will drop to .10 and they bucket shop this to death back and forth with each 1 cent difference giving them a 10% instant return.
This won't go above 12 cents for quite some time to keep control of flopping and to maximize their profits with each pass-thru. This is a game for shorts.
I have lost complete faith in Fibrocell as a "long." They have wasted the last year in gaining any traction in the stem cell race. Neostem and StemCell have already beat them plus the Nobel prize just went out today to Yamanaka who has a shop with Gladstone.
What is their burn rate now? This just pays for Pernock's and Delays salaries and perks for the year plus another 7-8 months of operations.
They already had like 1.1 billion shares so now they should be at about 1.55 billion shares. Wow!
If this round of financing takes care of all of the financing they will need to get the product going and finance the things they have going (i.e. clinical trials for burn victims) then the final result could be at least a 10/1 reverse split. That wouldn't be so bad if the stock ends up at $30 or $40 a share and maybe it could depending on if they can get Laviv to take off, market the other indications for their Laviv technology, and if the stem cell initiative results in some great news.
Right now things don't look real good but the company does have some money now so they won't be going bankrupt anytime soon. Ten cents a share was a very low price though but if they didn't do it the alternative was likely bankruptcy so they had no choice.